If the Price Level Is Taken as Given in a Simple

question 99

Multiple Choice

If the price level is taken as given in a simple macro model with demand-determined output,it is implicitly being assumed that

• A)net exports are positive.
• B)net exports are negative.
• C)the marginal propensity to consume out of disposable income is equal to the marginal propensity to spend out of national income.
• D)all resources in the economy are fully employed.
• E)producers can provide whatever output is demanded of them without requiring higher prices to offset any higher costs.

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Definitions:

Parol Evidence Rule

A legal rule that prevents the introduction of evidence outside the written contract that would alter or contradict its terms.

Integrated Contracts

Legal documents that combine all agreements and terms related to a particular deal or relationship into a single, comprehensive document.

Merger Clause

A provision in a contract stating that the agreement is the complete and final agreement between the parties, superseding all oral or written agreements made prior.

Statute Of Frauds

A legal doctrine requiring certain contracts to be in writing and signed by the parties involved, to be enforceable.