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Q: True False
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- If the MPC in an economy is .9 and aggreagte expenditures increase by $4 billion, the equlibrium GDP will increase by a. 40 billion b. 4.9 billion c. 36 billion d. 4 billion"Finance minister announces that the federal income-tax rate will rise by three percentage points." Assuming that aggregate output is demand-determined, the AE function will and equilibrium national income will O a. Shift down parallel to itself; fall. Ob. Shift up parallel to itself; rise. Oc. Become flatter; fall. on O d. Not change; not change. O e. Become steeper; rise. SgeIf imports are €100 million less than exports, government purchases are €500 million, consumer expenditures are €1 billion, and gross investment spending is €500 million, then GDP is O €2 billion. O €2.1 billion. O €1 billion. O €1.9 billion.
- If taxes fall and government spending rises by the same amount, there is very little change in GDP. O True O FalseIn the first half of 2017, automobile sales in the United States were lower than they were in the first half of 2016. The decrease in auto sales impacts GDP because new automobiles are counted as when purchased by households and when purchased by businesses. O investment; consumption O nondurable goods; durable goods O durable goods: nondurable goods O consumption; investmentReal Price Level Ig $ 2 G M. GDP 128 $ 18 $ 3 $ 1 $ 5 125 20 4 4 122 22 6. 119 24 4 2 116 26 10 3. In the accompanying table for a particular country, Cis consumption expenditures, Ig is gross investment expenditures, Gis government expenditures, X is exports, and Mis imports. All figures are in billions of dollars. If the amounts of GDP supplied at the price levels shown (in descending order) are $27, $25, $22, $18, and $13, the equilibrium price level will be Multiple Choice 128. 125 122. 119.
- When the U.S. government removes investment tax credits: O technological innovation advances more rapidly. O the cost of capital increases. O the return on investment increases. O capacity utilization in the economy expands. O consumption spending falls.Use the following graph to answer the next question. Price Level 0 AS3 AS₁ AS₂ Real Domestic Output, GDP Which of the following factors will shift AS1 to AS2? O An increase in real interest rates O A decrease in business subsidies O An increase in input prices O A decrease in business taxes.An inflationary gap is the amount by which: O Equilibrium GDP falls short of the full-employment GDP. O Aggregate expenditures exceed any given level of GDP. Saving exceeds investment at the full-employment GDP. Aggregate expenditures exceed the full-employment level of GDP. A Moving to another question will save this response. ere to search DELL
- What could cause the following shift? O Increase in GDP. O Expansionary fiscal policy. O Decrease in future MPK. All of the above. FE IS LMWhether or not we measure the economy's expenditure or its income: O national production national expenditure > national income.The expenditure approach measures GDP by adding together Select one: O A. wages, salaries and supplementary labour income, and other factor incomes. O B. the total expenditures of consumers, firms, net exporters, and by governments at all levels. O C. wages, salaries and supplementary labour income, other factor income, subsidies paid by the government, indirect taxes paid, and income of nonfarm unincorporated businesses. the total expenditures of consumers and firms. compensation of employees, rental income, corporate profits, net interest, proprietors' income, indirect taxes paid, and capital consumption expenditures, and by subtracting subsidies paid by the government. O D. O E.