Consider the Simplest Macro Model with Demand-Determined Output

question 80

Multiple Choice

Consider the simplest macro model with demand-determined output.If desired aggregate expenditure is greater than actual national income,then

• A)inventories will likely begin to fall,causing firms to increase production.
• B)actual national income must be less than the equilibrium level.
• C)actual national income must be greater than the equilibrium level.
• D)inventories will likely begin to rise,causing firms to reduce production.
• E)both A and B are correct.

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Definitions:

Leader Traits

Innate qualities and characteristics that contribute to an individual's ability to lead effectively.

Leadership Prototypes

The preconceived ideas or mental images of what qualities and characteristics a good leader should possess, differing by culture and individual.

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