Consider the Simplest Macro Model with Demand-Determined Output,where AE =

question 128

Multiple Choice

Consider the simplest macro model with demand-determined output,where AE = C + I.Suppose that actual national income is $900 billion and desired consumption plus desired investment is $890 billion.We can expect that

• A)firms will see a decrease in inventories,and they will respond by increasing output,thereby increasing actual national income.
• B)firms will decrease autonomous investment by $10 billion until equilibrium national income is reached at $890 billion.
• C)firms will increase autonomous investment by $10 billion until equilibrium national income is reached at $900 billion.
• D)actual national income will increase until equilibrium national income is reached at $900 billion.
• E)firms will see an increase in inventories,and they will respond by decreasing output,thereby decreasing actual national income.

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Definitions:

Nitrosonium Ion

A positively charged ion with the formula NO+, known for its role in organic nitrogen compound synthesis.

Secondary Amines

Organic compounds where a nitrogen atom is bonded to two carbon atoms, often represented as NHR2, where R denotes organic substituents.

N-Nitrosoamines

Organic compounds containing the functional group NNO, known for their roles as carcinogens.

Major Organic Product

The primary product of an organic reaction that is formed in the greatest yield.