The economy is in equilibrium, TP = TE, and Real GDP is $4,000 billion. The MPC is 0.70, the multiplier is operative, and idle resources exist at each expenditure round. Government purchases fall by $17 billion. As a result, the TE curve shifts __________, inventory levels unexpectedly __________, business firms __________ the quantity of goods and services they produce, and Real GDP __________
by __________.
A) downward; rise; decrease; falls; approximately $56.7 billion
B) downward; fall; increase; falls; approximately $56.7 billion
C) upward; rise; decrease; falls; $17 billion
D) upward; fall; decrease; rises; $17 billion
E) downward; rise; decrease; falls; approximately $11.9 billion
A
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Autarkia imports oil and natural gas and exports food grains to the rest of the world. Based on this information, we can conclude that Autarkia is a(n) ________ economy
A) closed B) command C) open D) communist
Economies of scale are created by greater efficiency of capital and by
A) longer chains of command in management. B) better wages for labor. C) smaller plant sizes. D) increased specialization of labor.
Figure 4-22
Refer to . Sellers pay how much of the tax per unit?
a.
$1.00.
b.
$1.50.
c.
$2.50.
d.
$3.00.
In which two market models would advertising be used most often?
A. Monopolistic competition and oligopoly B. Pure competition and monopolistic competition C. Pure monopoly and oligopoly D. Pure competition and pure monopoly