In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. Short-run equilibrium output in this economy equals:
A. 1,280.
B. 1,000.
C. 1,160.
D. 1,440.
Answer: C
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The time it takes for policy makers to change policy instruments once they have decided on the new policy is called
A) the data lag. B) the recognition lag. C) the legislative lag. D) the implementation lag. E) the effectiveness lag.
The four components of the aggregate expenditures model are:
a. consumption, investment, inventories, and government purchases. b. consumption, planned investment, unplanned changes in inventory, and exports. c. consumption, investment, government purchases, and net exports. d. consumption, investment, exports, and imports.
Of all the categories of unemployment, most unemployed persons fall into the category of
A) reentrant. B) new entrant. C) job leaver. D) job loser. E) none of the above
What does marginal cost equal?
a. total output divided by the change in total cost b. total cost divided by quantity of output produced c. the change of total cost divided by the change of output d. average cost divided by output