Question 1

-Refer to the above information to answer this question.What is the value of equilibrium income in this economy?

Accepted Answer

A) $3,000. 
B) $4,000. 
C) $6,000. 
D) $1,050. 
E) $1,200. 
A) $3,000. 
B) $4,000. 
C) $6,000. 
D) $1,050. 
E) $1,200.

Question 2

What is the effect of a decrease in the MTR?

Accepted Answer

A) The MLR will increase and the multiplier will increase. 
B) The MLR will decrease and the multiplier will increase. 
C) The MLR will increase and the multiplier will decrease. 
D) The MLR will decrease and the multiplier will decrease. 
E) The MLR will remain the same but the multiplier will increase. 
A) The MLR will increase and the multiplier will increase. 
B) The MLR will decrease and the multiplier will increase. 
C) The MLR will increase and the multiplier will decrease. 
D) The MLR will decrease and the multiplier will decrease. 
E) The MLR will remain the same but the multiplier will increase.

Question 3

-Refer to the information above to answer this question.Which of the following is an expression for the tax function?

Accepted Answer

A) T = 175 + 0.25Y 
B) T = 0.25Y 
C) T = 175 - 0.25Y 
D) T = 50 + 0.25Y 
E) T = 175 + 0.75Y 
A) T = 175 + 0.25Y 
B) T = 0.25Y 
C) T = 175 - 0.25Y 
D) T = 50 + 0.25Y 
E) T = 175 + 0.75Y

Question 4

The following data refers to a national economy with all figures in $billions.
  
-Refer to the table above to answer this question.What is the value of the multiplier?

Accepted Answer

A) 1 
B) 1.5 
C) 2 
D) 2.5 
E) 4 
A) 1 
B) 1.5 
C) 2 
D) 2.5 
E) 4

Question 5

What is the effect of a decrease in government spending?

Accepted Answer

A) It leads to an even larger increase in income. 
B) It leads to an even larger decrease in income. 
C) It leads to a smaller increase in income. 
D) It leads to a smaller decrease in income. 
A) It leads to an even larger increase in income. 
B) It leads to an even larger decrease in income. 
C) It leads to a smaller increase in income. 
D) It leads to a smaller decrease in income.

Question 6

All of the following,except one,will cause an increase in net exports in Canada.Which is the exception?

Accepted Answer

A) An increase in Canadian prices. 
B) An increase in foreign prices. 
C) An increase in foreign incomes. 
D) A depreciation of the Canadian dollar. 
A) An increase in Canadian prices. 
B) An increase in foreign prices. 
C) An increase in foreign incomes. 
D) A depreciation of the Canadian dollar.

Question 7

-Refer to the information above to answer this question.What is the value of the MTR?

Accepted Answer

A) 0.15 
B) 0.20 
C) 0.25 
D) 0.40 
E) 0.60 
A) 0.15 
B) 0.20 
C) 0.25 
D) 0.40 
E) 0.60

Question 8

MPC = 0.9;MPM = 0.2
-Refer to the above information to answer this question.What is the value of the MLR?

Accepted Answer

A) 0.1. 
B) 0.3. 
C) 0.5 
D) 0.7. 
A) 0.1. 
B) 0.3. 
C) 0.5 
D) 0.7.

Question 9

The following data relates to a national economy (all figures in $billions):
  
-Refer to the table above to answer this question.What is the value of equilibrium income?

Accepted Answer

A) $1,800 
B) $2,000 
C) $2,200 
D) $2,400 
E) Cannot be determined from the information. 
A) $1,800 
B) $2,000 
C) $2,200 
D) $2,400 
E) Cannot be determined from the information.

Question 10

-Refer to the above information to answer this question.What is the value of the multiplier?

Accepted Answer

A) 0.5. 
B) 0.67. 
C) 1.67. 
D) 2. 
A) 0.5. 
B) 0.67. 
C) 1.67. 
D) 2.

Question 11

Consider the following AE function:
AE = 600 + 0.75Y
a)What is the value of expenditure equilibrium?
b)If income is equal to$3,000,what is the value of unplanned inventories? Will there be a surplus or a shortage?

Accepted Answer

a)$2,400
b

Question 12

The following data refers to a national economy with all figures in $billions.
  
-Refer to the table above to answer this question.What is the value of the MPE?

Accepted Answer

A) 0.1 
B) 0.4 
C) 0.5 
D) 0.6 
E) 2 
A) 0.1 
B) 0.4 
C) 0.5 
D) 0.6 
E) 2

Question 13

The basis of the parameters for an economy shown in Table 6.5.(All figures are in $billion. )
  
-Refer to Table 6.5 to answer this question.What is the value of the multiplier in this economy?

Accepted Answer

A) 1. 
B) 1.54. 
C) 1.67. 
D) 2. 
E) 5. 
A) 1. 
B) 1.54. 
C) 1.67. 
D) 2. 
E) 5.

Question 14

If in an economy,the marginal tax rate = 0.1,the marginal propensity to save = 0.25,and the marginal propensity to import = 0.05,what is the value of the marginal leakage rate?

Accepted Answer

A) 0.3 
B) 0.35 
C) 0.4 
D) 0.5 
E) 0.6 
A) 0.3 
B) 0.35 
C) 0.4 
D) 0.5 
E) 0.6

Question 15

If XN is an autonomous $90 and the MPM is 0.2,what is the value of XN at an income of $500?

Accepted Answer

A) +$10. 
B) -$10. 
C) +$90. 
D) +$590. 
A) +$10. 
B) -$10. 
C) +$90. 
D) +$590.

Question 16

What happens to income earned in Canada?

Accepted Answer

A) It is spent on exports,imports,and investment and saved. 
B) It is spent on consumption,imports,and taxes and saved. 
C) It is spent on consumption,exports,and taxes and saved. 
D) It is spent on consumption,imports,taxes,and investment. 
E) It is spent on imports,taxes,and government spending. 
A) It is spent on exports,imports,and investment and saved. 
B) It is spent on consumption,imports,and taxes and saved. 
C) It is spent on consumption,exports,and taxes and saved. 
D) It is spent on consumption,imports,taxes,and investment. 
E) It is spent on imports,taxes,and government spending.

Question 17

Refer to the figure above to answer this question.What could cause a change from a to b?

Accepted Answer

A) An increase in national income in the United States. 
B) An increase in government spending. 
C) A decrease in interest rates. 
D) An increase in Canadian income. 
E) A decrease in autonomous taxes. 
A) An increase in national income in the United States. 
B) An increase in government spending. 
C) A decrease in interest rates. 
D) An increase in Canadian income. 
E) A decrease in autonomous taxes.

Question 18

Define the multiplier,and write it out in the form of a ratio.What is the equation for the multiplier?

Accepted Answer

The multiplier refers to the e

Question 19

MPC = 0.63;MPM = 0.1
-Refer to the above information to answer this question.What is the value of the MPE?

Accepted Answer

A) 0.053 
B) 0.53 
C) 0.73 
D) 0.83 
A) 0.053 
B) 0.53 
C) 0.73 
D) 0.83

Question 20

The following data refers to a national economy with all figures in $billions.
  
-Refer to the table above to answer this question.What is the value of the marginal tax rate?

Accepted Answer

A) 0.1 
B) 0.2 
C) 0.25 
D) 0.4 
E) 0.5 
A) 0.1 
B) 0.2 
C) 0.25 
D) 0.4 
E) 0.5

-Refer to the above information to answer this question.What is the value of equilibrium income in this economy?

What is the effect of a decrease in the MTR?

-Refer to the information above to answer this question.Which of the following is an expression for the tax function?

The following data refers to a national economy with all figures in $billions. -Refer to the table above to answer this question.What is the value of the multiplier?

What is the effect of a decrease in government spending?

All of the following,except one,will cause an increase in net exports in Canada.Which is the exception?

-Refer to the information above to answer this question.What is the value of the MTR?

MPC = 0.9;MPM = 0.2 -Refer to the above information to answer this question.What is the value of the MLR?

The following data relates to a national economy (all figures in $billions): -Refer to the table above to answer this question.What is the value of equilibrium income?

-Refer to the above information to answer this question.What is the value of the multiplier?

Consider the following AE function: AE = 600 + 0.75Y a)What is the value of expenditure equilibrium? b)If income is equal to$3,000,what is the value of unplanned inventories? Will there be a surplus or a shortage?

The following data refers to a national economy with all figures in $billions. -Refer to the table above to answer this question.What is the value of the MPE?

The basis of the parameters for an economy shown in Table 6.5.(All figures are in $billion. ) -Refer to Table 6.5 to answer this question.What is the value of the multiplier in this economy?

If in an economy,the marginal tax rate = 0.1,the marginal propensity to save = 0.25,and the marginal propensity to import = 0.05,what is the value of the marginal leakage rate?

If X_N is an autonomous $90 and the MPM is 0.2,what is the value of X_N at an income of $500?

What happens to income earned in Canada?

Refer to the figure above to answer this question.What could cause a change from a to b?

Define the multiplier,and write it out in the form of a ratio.What is the equation for the multiplier?

MPC = 0.63;MPM = 0.1 -Refer to the above information to answer this question.What is the value of the MPE?

The following data refers to a national economy with all figures in $billions. -Refer to the table above to answer this question.What is the value of the marginal tax rate?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters

Exam 6: Aggregate Expenditures

-Refer to the above information to answer this question.What is the value of equilibrium income in this economy?

What is the effect of a decrease in the MTR?

-Refer to the information above to answer this question.Which of the following is an expression for the tax function?

The following data refers to a national economy with all figures in $billions. -Refer to the table above to answer this question.What is the value of the multiplier?

What is the effect of a decrease in government spending?

All of the following,except one,will cause an increase in net exports in Canada.Which is the exception?

-Refer to the information above to answer this question.What is the value of the MTR?

MPC = 0.9;MPM = 0.2 -Refer to the above information to answer this question.What is the value of the MLR?

The following data relates to a national economy (all figures in $billions): -Refer to the table above to answer this question.What is the value of equilibrium income?

-Refer to the above information to answer this question.What is the value of the multiplier?

Consider the following AE function: AE = 600 + 0.75Y a)What is the value of expenditure equilibrium? b)If income is equal to$3,000,what is the value of unplanned inventories? Will there be a surplus or a shortage?

The following data refers to a national economy with all figures in $billions. -Refer to the table above to answer this question.What is the value of the MPE?

The basis of the parameters for an economy shown in Table 6.5.(All figures are in $billion. ) -Refer to Table 6.5 to answer this question.What is the value of the multiplier in this economy?

If in an economy,the marginal tax rate = 0.1,the marginal propensity to save = 0.25,and the marginal propensity to import = 0.05,what is the value of the marginal leakage rate?

If XN is an autonomous $90 and the MPM is 0.2,what is the value of XN at an income of $500?

What happens to income earned in Canada?

Refer to the figure above to answer this question.What could cause a change from a to b?

Define the multiplier,and write it out in the form of a ratio.What is the equation for the multiplier?

MPC = 0.63;MPM = 0.1 -Refer to the above information to answer this question.What is the value of the MPE?

The following data refers to a national economy with all figures in $billions. -Refer to the table above to answer this question.What is the value of the marginal tax rate?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters

If X_N is an autonomous $90 and the MPM is 0.2,what is the value of X_N at an income of $500?