Consider a Simple Macro Model with a Constant Price Level

question 53

Multiple Choice

Consider a simple macro model with a constant price level and demand- determined output. In such a model, the level of national income will

• A)remain constant if firms are accumulating inventories.
• B)tend to rise if firms have unplanned decumulation of inventories.
• C)tend to rise if desired aggregate expenditure is less than actual national income.
• D)be in equilibrium if all of the resources of the economy are fully employed.
• E)remain constant if savings equals consumption.

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Definitions:

Sexual Promiscuity

Engaging in sexual activities with multiple partners without committing to a monogamous relationship.

Pleasure Principle

A psychoanalytic concept describing the driving force behind human behavior to seek pleasure and avoid pain, primarily associated with the id.

Secondary Process

A term from psychoanalytic theory referring to the rational and conscious thought processes that are involved in problem solving and decision making.

Primary Process

A mode of thinking primarily associated with the unconscious and characterized by the free and associative flow of thoughts and impulses.