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In the Simple Macro Model That Is Considered in Chapters

Question 5

Multiple Choice

In the simple macro model that is considered in Chapters 21 and 22 of the textbook,


A) the economy is always in equilibrium.
B) there is no government or foreign trade.
C) the price level is determined within the model.
D) there are no supply-side influences on national income.
E) the simple multiplier is always equal to 1.

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