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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Definitions:

Discriminatory Language

Language or phrasing that makes unfair distinctions or shows prejudice against individuals or groups based on personal characteristics such as race, gender, or age.

Bias Avoidance

Efforts to recognize, reduce, and remove personal and systemic biases in decision-making processes or information presentation.

Fiscal Year

A twelve-month period used for accounting purposes and preparing financial statements, which may or may not align with the calendar year.

Capital Equipment

Large, long-term investments in goods or machinery used by a business to produce goods or services.