Consider a Macro Model in Which Output Is Assumed to Be

question 127

Multiple Choice

Consider a macro model in which output is assumed to be demand-determined.One situation which may justify this assumption is when

• A)net exports are positive.
• B)net exports are negative.
• C)the marginal propensity to consume out of disposable income is equal to the marginal propensity to spend out of national income.
• D)all resources in the economy are fully employed.
• E)the economy is operating with some unemployed resources.

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Definitions:

Intervertebral Disk

A fibrocartilaginous structure located between the vertebrae of the spine, acting as a shock absorber and allowing for flexibility.

Sciatica

A condition of pain going down the leg from the lower back, caused by irritation or compression of the sciatic nerve.

Cushion

A soft bag of material used to provide comfort, support, or decoration on furniture.

Maintaining Flexibility

The act of regularly engaging in activities that preserve or enhance the range of motion and elasticity of the muscles and tendons.