Use the aggregate expenditures model and the following values to answer the next question.AMPCIGT$9000.9$2,500$2,500$1,000Determine the change in the equilibrium level of Consumption (find ?C) following a decrease in investment from 2,500 to 2,000 (?I = -$500).
A. negative $4,500
B. positive $4,500
C. negative $4,000
D. positive $4,000
Answer: A
You might also like to view...
For an oil-importing country such as the United States, the immediate effect of a supply shock caused by an increase in the price of imported oil would tend to be
a. an increase in real output and a decrease in the general level of prices. b. a decrease in real output and an increase in the general level of prices. c. a decrease in both the general level of prices and real output. d. an increase in both the general level of prices and real output.
Bill is a laborer. What is the relationship between Bill's wage and his opportunity cost of an hour of leisure?
Which of the following is not a characteristic of less-developed countries?
A. high rates of illiteracy B. high unemployment C. low infant mortality rates D. low savings and investment rates
Demand-pull inflation:
A. occurs when total spending in the economy is excessive. B. is measured differently than cost-push inflation. C. can be present even during an economic depression. D. is also called "hyperinflation."