In a Simple Macro Model,it Is Generally Assumed That a Country's

question 54

Multiple Choice

In a simple macro model,it is generally assumed that a country's exports

• A)and imports are autonomous.
• B)and imports are induced.
• C)are autonomous,whereas imports are induced.
• D)are induced,whereas imports are autonomous.
• E)are always equal to investment.

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Definitions:

Marginal Product

The increase in output that occurs when one more unit of a certain input is added, with all other inputs remaining the same.

Profit Maximization

The process or strategy used by businesses to determine the price and output level that leads to the highest profit.

Demand Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity demanded for it over a given period of time.

Marginal Product

Marginal product refers to the additional output produced as a result of adding one more unit of a specific input, while holding other inputs constant.