In a Simple Macro Model with Demand- Determined Output, the Equilibrium

question 33

Multiple Choice

In a simple macro model with demand- determined output, the equilibrium level of national income is at an income

• A)to the left of the point where the AE curve intersects the 45- degree line.
• B)to the right of the point where the AE curve intersects the 45- degree line.
• C)where the AE curve intersects the 45- degree line.
• D)where saving equals income.
• E)where saving equals consumption.

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Definitions:

Sales Revenues

The income received by a company from its sales of goods or the provision of services.

Capital Cost Allowance

Capital cost allowance is a tax deduction available in Canada for depreciable property, allowing businesses to write off the cost of assets over a period of time.

Cash Operating Costs

Expenses related directly to the operations of a business, excluding financing costs.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income levels, jurisdictions, and other factors.