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:

Associative Property

A mathematical rule stating that the way in which numbers are grouped in operations does not change their result.

Multiplication

A mathematical operation where a number is added to itself a certain number of times.

Decimal Places

The number of digits to the right of the decimal point in a number, determining its precision.

Additive Inverse

The number that when added to the original number, yields zero.