In the Simple Macro Model That Is Considered in Chapters

question 5

Multiple Choice

In the simple macro model that is considered in Chapters 21 and 22 of the textbook,

• A) the economy is always in equilibrium.
• B) there is no government or foreign trade.
• C) the price level is determined within the model.
• D) there are no supply-side influences on national income.
• E) the simple multiplier is always equal to 1.

---

Definitions:

Personal Interest

An individual’s curiosity or concern about a particular subject, activity, or thing that provides them enjoyment or benefit.

Self-managed Teams

A type of work group that operates without a traditional manager and is responsible for a complete set of tasks.

Responsible

Describes someone or something reliable and accountable for actions or duties.

Particular Task

A specific duty or responsibility assigned to someone as part of their job or role.