According to the classical economists, an economy producing $10 million in goods and services
A. simultaneously generates the income necessary to purchase $10 million in goods and services.
B. could experience a permanent surplus if no one has estimated the demand for goods and services in the economy.
C. may be producing too much since the needs of people may not be this great.
D. is supplying $10 million in goods and services, but could be demanding more or less than $10 million in goods and services for a very long period of time.
Answer: A
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The distribution of money income can be represented graphically using
A) supply and demand diagrams. B) a Lorenz curve. C) a Keynesian curve. D) a Distribution curve.
Refer to the information provided in Table 24.4 below to answer the question(s) that follow.
Table 24.4
Refer to Table 24.4. The equilibrium level of output is ________ billion.
A. $1,000 B. $1,500 C. $2,000 D. $2,500