Which of the Following Is True

question 6

Multiple Choice

Which of the following is true?

• A) The structural deficit changes over the business cycle.
• B) At equilibrium expenditure, unplanned changes in inventory must be positive.
• C) In the real business cycle model, there is no AD curve.
• D) MPS + MPC = 1.

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Definitions:

Consumer Safety

Refers to the efforts and policies that protect consumers from products, services, or practices that may cause harm.

Principal-Agent Problem

A conflict in priorities between a person or group making decisions on behalf of another person or group.

Political Corruption

The use of powers by government officials for illegitimate private gain.

Logrolling

A practice in politics where two or more parties agree to vote for each other's proposed legislation or interests.