An identity is an equation that
A)describes an equilibrium.
B)pertains to macroeconomics,not to microeconomics.
C)must be true because of how the variables in the equation are defined.
D)involves final goods,not intermediate goods.

Question

Quizplus · Accepted Answer

An identity is a mathematical equation that must hold true by definition or construction of the variables involved. It is not related to equilibrium or macro/micro economics, and does not necessarily involve final goods.

An Identity Is an Equation That