Assume there is no government or foreign sector. If the MPS is 0.10, a $20 billion decrease in planned investment will cause aggregate output to decrease by
A. $20 billion.
B. $50 billion.
C. $100 billion.
D. $200 billion.
Answer: D
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Refer to Figure 11-11. What is the amount of excess capacity?
a. Q4 - Q3 units b. Q3 - Q2 units c. Q3 - Q1 units d. Q4 - Q2 units
A price index is designed to measure
a. changes in the general level of employment across time periods. b. changes in the quantity of output produced across time periods. c. the market value of output produced during the current period with the value of output produced during an earlier time period. d. the cost of buying a market basket of goods at a point in time relative to the cost of buying the same market basket during an earlier time period.
During the early 1920s in Germany, prices
a. doubled annually. b. doubled monthly. c. tripled monthly. d. tripled annually.
Refer to the graphs shown, which show indifference curve analysis with the associated demand curves.
The best explanation for a movement from point D to point E is:
A. an inward rotation of the budget constraint along the x-axis, forcing the consumer to move from point B to point A. B. an outward rotation of the budget constraint along the x-axis, allowing the consumer to move from point A to point B. C. an inward rotation of the budget constraint along the y-axis, forcing the consumer to move from point C to point B. D. a parallel shift of the budget constraint, allowing the consumer to move from point A to point C.