In the Short-Run Macro Model,what Is the Relationship Between Income

question 164

Multiple Choice

In the short-run macro model,what is the relationship between income and government purchases?

• A) It is positive and stable.
• B) It is positive but unstable.
• C) It is negative and stable.
• D) It is negative but unstable.
• E) There is no relationship between the two variables.

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Definitions:

Exploitation

Utilizing resources or people in an unfair or unethical manner for one's own benefit, often underpaying or overworking them.

Barter

A system of exchange where participants in a transaction directly exchange goods or services for other goods or services without using a medium of exchange, such as money.

Benevolence

the inclination to perform kind, charitable acts towards others without expecting anything in return.

Circular-Flow Diagram

A visual model of the economy showing the interactions between households and businesses through the markets for products and resources.