! 1. In the circular flow model, a state of equilibrium is reached when:A) savings are equal to investment.B) government spending is equal to taxation.C) imports are equal to exports.D) total injections are equal to total withdrawals.E) production is equal to expenditure is equal to income.2. If autonomous expenditure remains constant, and there is a decrease in theproportion of aggregate disposable income consumed in theeconomy,then....A) equilibrium income will be reduced and the multiplier will be increased.B) equilibrium income will be increased. and the multiplier will be increased.C) equilibrium income will be reduced and the multiplier will be reduced.D) equilibrium income will be increased and the multiplier will be reduced.E) equilibrium income will be increased and the multiplier will remain unchanged.

Since you have posted multiple questions, as per answering guidelines we will solve the first…

1. In the circular flow model, a state of equilibrium is reached when: A) savings are equal to investment. B) government spending is equal to taxation. C) imports are equal to exports. D) total injections are equal to total withdrawals. E) production is equal to expenditure is equal to income.

1. In the circular flow model, a state of equilibrium is reached when: A) savings are equal to investment. B) government spending is equal to taxation. C) imports are equal to exports. D) total injections are equal to total withdrawals. E) production is equal to expenditure is equal to income.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

1. In the circular flow model, a state of equilibrium is reached when:
A) savings are equal to investment.
B) government spending is equal to taxation.
C) imports are equal to exports.
D) total injections are equal to total withdrawals.
E) production is equal to expenditure is equal to income.
2. If autonomous expenditure remains constant, and there is a decrease in the
proportion of aggregate disposable income consumed in the
economy,
then....
A) equilibrium income will be reduced and the multiplier will be increased.
B) equilibrium income will be increased. and the multiplier will be increased.
C) equilibrium income will be reduced and the multiplier will be reduced.
D) equilibrium income will be increased and the multiplier will be reduced.
E) equilibrium income will be increased and the multiplier will remain unchanged.

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