Consider the Simplest Macro Model with Demand-Determined Output,where AE =

question 133

Multiple Choice

Consider the simplest macro model with demand-determined output,where AE = C + I.Suppose that actual national income is $900 billion and desired consumption plus desired investment is $920 billion.We can expect that

• A)firms will see an increase in inventories,and they will respond by decreasing output,thereby decreasing actual national income.
• B)firms will decrease autonomous investment by $20 billion until equilibrium national income is reached at $900 billion.
• C)firms will increase autonomous investment by $20 billion until equilibrium national income is reached at $920 billion.
• D)firms will see a decrease in inventories,and they will respond by increasing output,thereby increasing actual national income.
• E)actual national income will decrease until equilibrium national income is reached at $900 billion.

Understand the role of necessity-based entrepreneurship and differentiate between opportunity-driven and necessity-driven entrepreneurs.

Identify key artists and their contributions to various art movements from the 20th century.

Understand the principles and significance of formalism in art criticism.

Recognize the influence of postwar movements such as Expressionism and Abstract Expressionism.

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Definitions:

X

Typically used to represent an unknown variable in mathematics.

Masses

A term referring to the quantity of matter in a body, relevant in physics for calculating gravitational forces and inertia.

Mercury

The smallest and innermost planet in the Solar System, known for its swift orbit around the sun.

Sun

The Sun is the star at the center of the Solar System, around which the Earth and other planets orbit.