Consider a Macro Model in Which Output Is Assumed to Be

Multiple Choice

Consider a macro model in which output is assumed to be demand-determined.One situation which may justify this assumption is when

A) net exports are positive.
B) net exports are negative.
C) the marginal propensity to consume out of disposable income is equal to the marginal propensity to spend out of national income.
D) all resources in the economy are fully employed.
E) the economy is operating with some unemployed resources.