Assume a Simple Macroeconomic Model.When Inventories Rise Unexpectedly

question 191

Multiple Choice

Assume a simple macroeconomic model.When inventories rise unexpectedly,

• A)income is above its equilibrium value.
• B)income will rise until it reaches its equilibrium value.
• C)total spending is higher than total output.
• D)All of the above.

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Definitions:

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act in certain ways based on the expectation that their actions will lead to desired outcomes.

Living Standards

Living standards refer to the level of wealth, comfort, material goods, and necessities available to a person or community.

Psychological Needs

The fundamental emotional or mental requirements that individuals need to achieve well-being and contentment.

Autonomous Motivation

The drive to engage in an activity out of genuine interest or internal value, rather than external pressures or demands.