Consider a Simple Macro Model with a Constant Price Level

question 36

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.If national income is above its equilibrium level,it is likely that inventories are ________,and so national income tends to ________.

• A)accumulating; rise
• B)accumulating; fall
• C)being depleted; rise
• D)being depleted; fall
• E)constant; fall