Suppose the Expenditure Line Is Given by the Equation E

question 51

Multiple Choice

Suppose the expenditure line is given by the equation E = 800 + .75Y, and output is equal to 3,000. Which of the following is true?

• A)There is an incentive for firms to increase output.
• B)Spending is less than income.
• C)Spending is equal to income.
• D)The economy is in equilibrium.
• E)There is too much output.

---

Definitions:

Problem Factoring

Dividing a problem into a series of logical, connected questions.

Solution Development

The process of identifying, designing, and implementing answers to specific problems or needs.

Systematic Inquiry

A structured method of investigating or examining a topic or problem.

Personal Activity

Any task or action undertaken by an individual, often relating to leisure, hobbies, or daily routines.