In the Most Basic Model of the Economy, Equilibrium Output

question 242

Multiple Choice

In the most basic model of the economy, equilibrium output is achieved when:

• A) there is no change in inventories.
• B) C+I equals output.
• C) the C+I line intersects the 45 degree line.
• D) all of the above are correct.

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Definitions:

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IMC Process

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