The Simple Macro Model That Is Considered in Chapters 21

question 110

Multiple Choice

The simple macro model that is considered in Chapters 21 and 22 of the textbook is characterized by

• A) a given (constant) price level, and equilibrium national income determined by demand and supply.
• B) an endogenous price level, and national income that is solely demand determined.
• C) a given (constant) price level, and national income that is solely demand determined.
• D) an endogenous price level, and equilibrium national income determined by demand and supply.
• E) an open economy with an endogenous exchange rate.

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Definitions:

Orbicularis Oculi

A muscle surrounding the eye socket that controls the closing of the eyelid.

Temporalis

A broad, fan-shaped muscle on each side of the head that aids in chewing by elevating the mandible (lower jaw).

Sternocleidomastoid

A muscle in the side of the neck that acts to flex and rotate the head.

Orbicularis Oculi

A muscle around the eye socket that enables the eye to close and squint.