Consider the Simplest Macro Model with Demand-Determined Output

question 80

Multiple Choice

Consider the simplest macro model with demand-determined output.If desired aggregate expenditure is greater than actual national income,then

• A)inventories will likely begin to fall,causing firms to increase production.
• B)actual national income must be less than the equilibrium level.
• C)actual national income must be greater than the equilibrium level.
• D)inventories will likely begin to rise,causing firms to reduce production.
• E)both A and B are correct.

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Definitions:

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Family and Medical Leave Act

A U.S. federal law that provides eligible employees with unpaid, job-protected leave for certain family and medical reasons.

Unpaid Leave

A period of time that employees are allowed to be away from work, without compensation, which can be taken voluntarily or be mandated by the employer.

Supporting Military Families Act

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