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:

Whistleblowing

The act of exposing any kind of information or activity deemed illegal, unethical, or not correct within an organization.

Communication Costs

Expenses associated with the transfer of information, such as telecommunications, mailing, and meetings.

Main Costs

The primary or most significant expenses associated with running a business, project, or task.

Corporate Culture

The collective values, beliefs, attitudes, and practices that characterize an organization and influence its members' behavior.