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:

Torts

A body of law focusing on civil wrongs that cause harm or loss, leading to legal liability and a requirement to pay damages.

Agent

A person or entity authorized to act on behalf of another, usually in a business or legal capacity, to create a legal relationship with a third party.

Agency Relationship

A legal arrangement where one party, the agent, is authorized to act on behalf of another party, the principal, in business transactions.

Undisclosed Principal

A person who is represented by an agent in a transaction but whose identity is not revealed to the third party involved in the transaction.