Refer to the information provided in Figure 23.9 below to answer the question(s) that follow.
Figure 23.9Refer to Figure 23.9. At aggregate output level $300 million, there is a
A. $75 million unplanned decrease in inventories.
B. $100 million decrease in inventories.
C. $100 million increase in inventories.
D. $75 million unplanned increase in inventories.
Answer: D
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Which of the following would be considered an example of fiscal policy?
A. Provision of additional cash to the banking system. B. A reduction in income tax rates. C. A broad government initiative to reduce the country's reliance on agriculture and promote high-technology industries. D. Interest rate hikes generated by a reduction in the money supply.
Which of the following is an example of a normative economic statement?
A) Prices rise when the government prints too much money. B) Universal access to quality health insurance is the most important domestic policy issue of our time. C) Interest rates rise when the government runs persistent budget deficits. D) Extending the time in which laid-off workers are eligible to receive government unemployment compensation has increased the unemployment rate. E) Lowering marginal income tax rates depresses consumer spending.
When researchers compare people who are asked to imagine that, having previously purchased a ticket for $10, they arrive at the theater to discover they have lost their ticket to people who are asked to imagine that they arrive just before the performance to buy a ticket and find they have lost $10 from their wallets, which group is more likely to say that they would still attend the performance?
A. Both groups are equally likely to say they would attend the performance. B. The lost $10 group C. Both groups report that they would no longer go to the performance. D. The lost ticket group
Assume the current equilibrium level of income is $200 billion as compared to the full-employment income level of $240 billion. If the MPC is .625, what change in aggregate expenditures is needed to achieve full employment?
A. A decrease of $12 billion. B. An increase of $25 billion. C. An increase of $10 billion. D. An increase of $15 billion.