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If Output Determines Income and Income Determines Spending

Question 7

Multiple Choice

If output determines income and income determines spending


A) an equilibrium is impossible in the economy.
B) intended spending and actual spending are always equal.
C) the C + I line is the same as the 45-degree line.
D) the levels of both national output and prices rise indefinitely.
E) the level of GDP changes unless intended spending equals GDP.

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