Consider the Simplest Macro Model with a Constant Price Level

Multiple Choice

Consider the simplest macro model with a constant price level and demand- determined output. If national income is less than its equilibrium level, it is likely that firms' inventories are _ , and so national income tends to .

A) constant; fall
B) being depleted; rise
C) accumulating; fall
D) accumulating; rise
E) being depleted; fall