Consider a Macro Model in Which Output Is Assumed to Be

question 127

Multiple Choice

Consider a macro model in which output is assumed to be demand-determined.One situation which may justify this assumption is when

• A)net exports are positive.
• B)net exports are negative.
• C)the marginal propensity to consume out of disposable income is equal to the marginal propensity to spend out of national income.
• D)all resources in the economy are fully employed.
• E)the economy is operating with some unemployed resources.

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Definitions:

Impose Discipline

The act of enforcing rules or standards of behavior and applying penalties for violations to maintain order.

Limited Funding

A situation where financial resources are insufficient to meet the needs or ambitions of a project, organization, or initiative.

Police Corruption

Dishonest or fraudulent conduct by police officers, typically involving bribery or the misuse of power.

Drug Traffickers

Individuals involved in the illegal distribution and sale of drugs.