If the Price Level Is Taken as Given in a Simple

Multiple Choice

If the price level is taken as given in a simple macro model with demand-determined output,it is implicitly being assumed that

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) producers can provide whatever output is demanded of them without requiring higher prices to offset any higher costs.