Consider a Simple Macro Model with Demand-Determined Output

question 32

Multiple Choice

Consider a simple macro model with demand-determined output.At the equilibrium level of national income,

• A)consumers' purchases of goods and services equal firms' purchases of investment goods.
• B)firms will hold no inventories of raw materials or final goods.
• C)desired aggregate expenditures will equal total output.
• D)desired aggregate expenditures will equal total output minus inventory holdings.
• E)consumers' purchases of goods and services equal their saving.

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