Refer to the information provided in Table 23.8 below to answer the question(s) that follow. Table 23.8
Refer to Table 23.8. Which of the following statements is false?
A. If aggregate output equals $4,000 million, then aggregate saving equals $1000 million.
B. At an output level $4,000 million, there is a $400 million unplanned inventory decrease.
C. At an output level of $3,000 million, there is a $600 million unplanned inventory decrease.
D. The MPC for this economy is 0.8.
Answer: A
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The arithmetic value of (1 - MPC) equals
A) MPS. B) APS. C) APC. D) NDP.
A government-owned monopoly is more likely to:
A. provide a greater quantity of output than a private one. B. provide output at a lower price than a private one. C. serve public interest than maximize profit. D. All of these statements are true.
When Pepsi becomes more expensive relative to other beverages, people will purchase less Pepsi. This observation is known as the:
a. diamond-water paradox. b. law of diminishing marginal utility. c. substitution effect. d. income effect.
Suppose the government of Southie imposes a per-unit sales tax on buyers in the market for jam and jellies. Which of the following is most likely to be an outcome of the tax?
a. A decrease in the market equilibrium price of jam and jellies b. An increase in the quantity demanded by consumers c. An increase in government revenue by an amount equal to the deadweight loss d. An increase in the demand for jams and jellies