Consider a Simple Macro Model with Demand- Determined Output

question 104

Multiple Choice

Consider a simple macro model with demand- determined output. An exogenous change in the price level shifts the AE curve because the change affects desired and desired .

• A)consumption; net exports
• B)government purchases; net exports
• C)investment; consumption
• D)consumption; imports
• E)consumption; investment

---

Definitions:

Firm Offer

In contract law, refers to an offer that remains valid for a specified period during which it cannot be withdrawn by the offeror.

Condition Precedent

A legal term describing a condition that must be fulfilled before a contract or agreement becomes effective or before a party is obligated to perform.

Harvard Medical School

A globally prestigious medical school located in Boston, Massachusetts, known for its research, teaching, and clinical care.