Question 1

-Refer to Table 11.3 At an aggregate output level of $4,000 million, what will change in order to bring the economy to equilibrium?

Accepted Answer

A)  Output must decrease. 
B)  Consumption must increase. 
C)  Investment must increase. 
D)  Inventories must decrease. 
A)  Output must decrease. 
B)  Consumption must increase. 
C)  Investment must increase. 
D)  Inventories must decrease.

Question 2

-Refer to Table 11.3. If aggregate output equals _______, there will be a $50 million unplanned decrease in inventories.

Accepted Answer

A)  $4,000 million 
B)  $2,000 million 
C)  $2,500 million 
D)  $3,500 million 
A)  $4,000 million 
B)  $2,000 million 
C)  $2,500 million 
D)  $3,500 million

Question 3

An increase in the price level will:

Accepted Answer

A)  increase consumption and increase output demanded. 
B)  decrease consumption and increase output demand. 
C)  decrease consumption and decrease output demanded. 
D)  increase consumption and increase output demand. 
A)  increase consumption and increase output demanded. 
B)  decrease consumption and increase output demand. 
C)  decrease consumption and decrease output demanded. 
D)  increase consumption and increase output demand.

Question 4

An increase in the income tax rate will cause the C + I + G line to become:

Accepted Answer

A)  flatter and the equilibrium income to decrease. 
B)  steeper and the equilibrium income to increase. 
C)  flatter and the equilibrium income to increase. 
D)  steeper and the equilibrium income to decrease. 
A)  flatter and the equilibrium income to decrease. 
B)  steeper and the equilibrium income to increase. 
C)  flatter and the equilibrium income to increase. 
D)  steeper and the equilibrium income to decrease.

Question 5

What is the balanced- budget multiplier?

Accepted Answer

The balanced- budget multiplier measures

-Refer to Table 11.3 At an aggregate output level of $4,000 million, what will change in order to bring the economy to equilibrium?

-Refer to Table 11.3. If aggregate output equals _______, there will be a $50 million unplanned decrease in inventories.

An increase in the price level will:

An increase in the income tax rate will cause the C + I + G line to become:

What is the balanced- budget multiplier?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

Unemployment and Inflation

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters

Exam 11: The Income-Expenditure Model

-Refer to Table 11.3 At an aggregate output level of $4,000 million, what will change in order to bring the economy to equilibrium?

-Refer to Table 11.3. If aggregate output equals _______, there will be a $50 million unplanned decrease in inventories.

An increase in the price level will:

An increase in the income tax rate will cause the C + I + G line to become:

What is the balanced- budget multiplier?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

Unemployment and Inflation

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters