In a Simple Macro Model with Demand-Determined Output,the Equilibrium Level

question 135

Multiple Choice

In a simple macro model with demand-determined output,the equilibrium level of national income is at an income

• A)to the left of the point where the AE curve intersects the 45-degree line.
• B)where the AE curve intersects the 45-degree line.
• C)to the right of the point where the AE curve intersects the 45-degree line.
• D)where saving equals consumption.
• E)where saving equals income.

Understand the principles and rules governing sales of goods, including the effects of warranties, conditions, and the passing of risk.

Recognize the applicability and limits of the Sale of Goods Act in various transactions.

Identify legal responsibilities and rights of parties in sales contracts, including buyers, sellers, manufacturers, and dealers.

Analyze the legal consequences of breach of contract in sales transactions.

---

Definitions:

Average Variable Cost

The total variable costs (costs that change with the level of output) of production divided by the quantity of output produced.

Short Run

A time period in which at least one input is fixed and cannot be changed by the firm, affecting its production decisions.

Purely Competitive Market

Another term for a perfectly competitive market, emphasizing its features like a large number of small firms and identical products.

Marginal Revenue

The increased earnings resulting from the sale of one extra unit of a good or service.