In the short-run macro model, equilibrium occurs when
a. all of the following conditions are satisfied
b. the unintended change in inventories is zero
c. total sales equals output
d. the aggregate expenditure line intersects the 45-degree line
e. GDP equals aggregate expenditure
A
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The international debt crisis of early 1982 was precipitated when ________ could not pay its international debts
A) Russia B) Mexico C) Brazil D) Malaysia E) China
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index and current international transactions remain the same. b. The GDP Price Index falls, and current international transactions become more negative (or less positive). c. The GDP Price Index rises, and current international transactions becomes more negative (or less positive). d. The GDP Price Index rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.