In a Simple Macro Model with No Government and No

question 106

Multiple Choice

In a simple macro model with no government and no foreign trade,the equilibrium level of national income is the level of income at which

• A)aggregate desired expenditure is greater than actual national income.
• B)aggregate desired expenditure equals actual national income.
• C)aggregate desired expenditure equals consumer spending.
• D)saving equals income.
• E)saving equals consumer spending.

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Definitions:

Farm Productivity

The measure of output (crop or livestock) produced per unit of input (such as land, labor, or capital) on a farm.

U.S. Farm Products

Agricultural goods produced in the United States, which include a wide range of food and raw materials.

Foreign Tariffs

Taxes imposed by a government on goods and services imported from other countries, often used to protect domestic industries.

Agricultural Commodities

Basic goods used in food production and obtained from farming activities, like grains, livestock, and dairy.