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