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.

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