We Would Expect Real National Income to Be "Demand Determined

Multiple Choice

We would expect real national income to be "demand determined" when
1) there is large-scale unemployment of resources in the economy;
2) firms are price setters;
3) firms have excess capacity.

A) 1,2,and 3
B) 1 and 2
C) 2 and 3
D) 1 only
E) 3 only