Consider a Simple Macro Model with Demand-Determined Output

Multiple Choice

Consider a simple macro model with demand-determined output.At the equilibrium level of national income,

A) consumers' purchases of goods and services equal firms' purchases of investment goods.
B) firms will hold no inventories of raw materials or final goods.
C) desired aggregate expenditures will equal total output.
D) desired aggregate expenditures will equal total output minus inventory holdings.
E) consumers' purchases of goods and services equal their saving.