In a Simple Model of the Economy with Demand-Determined Output,the

question 148

Multiple Choice

In a simple model of the economy with demand-determined output,the equilibrium level of national income is at an income

• A)to the right of the point where the AE curve intersects the 45-degree line.
• B)to the left of the point where the AE curve intersects the 45-degree line.
• C)where aggregate desired expenditure equals the value of total output.
• D)where aggregate desired expenditure equals consumption.
• E)where saving equals consumption.

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Definitions:

E-Commerce

Electronic commerce, or e-commerce, encompasses the buying and selling of goods and services using the internet and other electronic systems.

Discount Stores

Retail outlets that sell products at lower prices than traditional department stores or retailers, typically by offering goods that are off-brand or in some way discounted.

Frictionally Unemployed

Individuals temporarily out of work while moving between jobs or looking for their first jobs.

Unemployment Rate

An indicator of the proportion of people in the workforce who are unemployed and searching for work.