According to the classical economists, an economy producing $15 trillion in goods and services
A) may be producing too much since the needs of people may not be this great.
B) could experience a permanent glut if no one has estimated the demand for goods and services in the economy.
C) simultaneously generates the income necessary to purchase $15 trillion in goods and services.
D) is supplying $15 trillion in goods and services, but could be demanding more or less than $15 trillion in goods and services for a very long period of time.
C
You might also like to view...
Suppose the goal of a union is to maximize the total income of all workers it represents. In this case it will probably aim for a wage at which the elasticity of demand for workers is
a. 0. b. infinite. c. 1. d. ranging from 2 to 5.
To get a complete measure of the total spending on U.S.-produced final goods and services, one must adjust aggregate demand by
a. adding imports and subtracting exports. b. adding imports that are purchased by U.S. consumers. c. adding exports and subtracting imports. d. subtracting exports sold to foreigners.