If autonomous consumption is $1,000 . the MPC is 0.75, net taxes are $500, investment spending is $800, and government purchases equals $500, and NX = $0, what is equilibrium GDP?
a. $1,800
b. $1,925
c. $2,566.7
d. $7,200
e. $7,700
E
You might also like to view...
Time series variables fail to be stationary when
A) the economy experiences severe fluctuations. B) the population regression has breaks. C) there is strong seasonal variation in the data. D) there are no trends.
In the Keynesian aggregate expenditure model, the 45-degree line indicates:
a. amounts households plan to spend at each possible level of income. b. amounts households plan to save at each possible level of income. c. all income levels at which the planned spending of decision makers equals total output. d. all income levels at which the marginal propensity to consume is one.
In order to be classified as unemployed, a person must be not working,
A) have been actively looking for work within the past four weeks, and currently be available for work. B) and currently be available for work, regardless of whether one is actively looking for work or not. C) and be waiting to be called back to work from a temporary layoff. D) and actively looking for work within the past year. E) ?a or c
When a producer has a comparative advantage in producing a good, it means the producer:
A. has the ability to produce the good at a lower opportunity cost than others. B. is efficient in production. C. has no reason to trade with others. D. can produce more of that good than others with the same number of workers.