If net exports increase by 250 and the mpc is 0.75, equilibrium aggregate output increases by
A) 250.
B) 500.
C) 750.
D) 1000.
D
You might also like to view...
Does an increase in the demand for Introductory Economics increase the cost to students of taking the course?
A) No, because tuition rates are not set to clear the market. B) Not if the college refuses to hire additional people to teach the course. C) Yes, if the course is consequently taught in a larger room, which costs more to heat. D) Yes, insofar as students have to accept less satisfactory class schedules in order to take the course.
Which of the following describes differentiated products? a. They have close substitutes in the market
b. They cater to the needs of only the lower-income section of the population. c. The prices and quantities of such products are set by the government. d. The supply of such products is independent of the market price.
A rate of inflation that exceeds the growth rate of money for a country could be explained by:
A. a decreasing velocity of money. B. a growing real economy. C. a constant velocity of money. D. an increasing velocity of money.
The diagram below shows the general equilibrium model for X and Y for a small hypothetical economy. Point A in this diagram represents positions where 
A. the economy is at an economically efficient allocation of resources. B. there is an excess demand for good X. C. good Y costs less to produce than its production cost at point C. D. there is an excess supply of good X.