The Most Basic Premise of the Aggregate Expenditures Model Is

Multiple Choice

The most basic premise of the aggregate expenditures model is that:

A) The total output produced in the economy depends directly on the level of total spending
B) The level of employment in the economy depends inversely on the real wage rate
C) The total output produced depends mostly on the total capacity of firms to produce
D) The unemployment level in the economy is inversely related to the inflation rate