Which of the following statements is accurate? a.When unplanned inventory changes are positive, GDP is below its equilibrium value b.When unplanned inventory changes are negative, GDP is above its equilibrium value c.When unplanned inventory changes are positive, GDP is at its equilibrium value d.When unplanned inventory changes are negative, GDP is below its equilibrium value e.None of the above
181.Which of the following statements is accurate?
a.When unplanned inventory changes are positive, GDP is below its equilibrium value
b.When unplanned inventory changes are negative, GDP is above its equilibrium value
c.When unplanned inventory changes are positive, GDP is at its equilibrium value
d.When unplanned inventory changes are negative, GDP is below its equilibrium value
e.None of the above
182.When unplanned inventory changes are positive, GDP is current at its equilibrium level
a.True
b.False
183.Consider Figure 11-10 above. Which of the following is true?
a.Equilibrium GDP is $8 trillion
b.Unplanned inventory changes are $0.4 trillion when GDP is $8 trillion
c.Equilibrium GDP is $7 trillion
d.The MPC is 1
e.Government expenditures are $8.6 trillion
184.Consider Figure 11-10 above. Equilibrium GDP occurs at
a.$7 trillion
b.$8 trillion
c.$9 trillion
d.$8.6 trillion
e.there is insufficient information to accurately answer the question
185.Consider Figure 11-10 above. If the full employment level of output is $9 trillion, which of the following is true?
a.The economy is currently operating at the full employment level
b.The economy is currently operating below than the full employment level
c.The economy is currently operating above the full employment level
d.The economy is operating neither at equilibrium nor full employment
e.Prices are rising
186.Where can equilibrium GDP be found on a graph?
a.Where the consumption function crosses the 45-degree line
b.Where the 45-degree line crosses the investment function
c.Where the aggregate expenditure function crosses the 45-degree line
d.Where total output is equal to the unplanned inventory change
e.Where the next exports function crosses the 45-degree line
187.The difference between the number of workers employed if the economy was operating at full employment and the number of workers currently employed given aggregate expenditures is known as
a.cyclical
b.frictional unemployment
c.structural unemployment
d.unemployment is not possible in the short run macro model
e.urban unemployment
188.Suppose the marginal propensity to consume is 0.80 and equilibrium GDP resulting from a change in investment spending falls by -$500 billion. What must have been the initial change in investment spending
a.$100 billion
b.-$100 billion
c.$500 billion
d.-$500 billion
e.-$400 billion
189.If the marginal propensity to consumer is 0.9, what is the value of the expenditure multiplier?
a.1.0
b.1.9
c.10
d.0.1
e.0.9
190.Suppose a $30 billion increase in government purchases increased GDP by $120 billion, what is the value of the MPC?
a.4.00
b.0.75
c.0.25
d.0.50
e.0.33
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