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:

Equal Protection

The constitutional guarantee that no person or group will be denied the same protection of the laws that is enjoyed by other similarly situated individuals.

Taxing Power

The legal authority granted to governmental entities to impose taxes on individuals and organizations to raise revenue for public purposes.

Statutes Unconstitutional

Laws deemed to violate or not conform to the established constitution of the land.

Power Struggles

Power struggles refer to conflicts or competitions between individuals or groups for dominance, control, or influence within an organization or social setting.