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:

Retirement

The period of one's life after withdrawing from active work or service, often due to reaching a certain age or for health reasons.

Retirement

The act of leaving one's job and ceasing to work, typically due to reaching a certain age or for health reasons.

Stress

The body’s response to any demand or challenge, which can be caused by both good and bad experiences.

Satisfaction

The feeling of pleasure or contentment that arises when one's needs, desires, or expectations are fulfilled.