1. The income-expenditure model is most appropriate for long-run analysis. _________ (True/False) 2. Equilibrium output occurs when real output equals planned expenditures. _________ (True/False) 3....

1. The income-expenditure model is most appropriate for long-run analysis. _________ (True/False)

2. Equilibrium output occurs when real output equals planned expenditures. _________ (True/False)

3. In our most basic model of the economy, the only expenditures incurred are _________ and _________.

4. At any point on the 45° line, planned expenditures equal _________.