Consider a Simple Macro Model with Demand-Determined Output

question 119

Multiple Choice

Consider a simple macro model with demand-determined output.At the equilibrium level of national income,

• A)consumers' purchases of goods and services equal firms' purchases of investment goods.
• B)firms will hold no inventories of raw materials or final goods.
• C)desired aggregate expenditures will equal total output.
• D)desired aggregate expenditures will equal total output minus inventory holdings.
• E)consumers' purchases of goods and services equals their saving.

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Definitions:

Dominant Tenement

In property law, this refers to the property that benefits from an easement over another piece of land, known as the servient tenement.

Right of Way

The legal right to pass through property owned by another, or a designated corridor over which one has a legal right to pass.

Specific Performance

Specific performance is a legal remedy where a court orders the breaching party to fulfill their exact duties under a contract, as opposed to paying damages.

Damages

Compensation sought or awarded in a legal action for loss or injury.