In a Simple Macro Model with No Government and No

question 106

Multiple Choice

In a simple macro model with no government and no foreign trade,the equilibrium level of national income is the level of income at which

• A)aggregate desired expenditure is greater than actual national income.
• B)aggregate desired expenditure equals actual national income.
• C)aggregate desired expenditure equals consumer spending.
• D)saving equals income.
• E)saving equals consumer spending.

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Definitions:

Demand Curves

Graphs that show the relationship between the price of a good and the quantity demanded by consumers at those prices.

Universal Basic Income

A financial support strategy that offers all citizens a regular, unconditional sum of money, regardless of employment status.

Guarantee

A formal promise or assurance that certain conditions will be fulfilled, often related to the quality or durability of a product.

Minimum Monthly Income

The lowest monthly income that an individual or household earns, which can also refer to the minimum wage set by governments.