In macroeconomics, equilibrium is defined as that point at which
Detailed Answer
A
3
The ratio of the change in the equilibrium level of output to a change in some autonomous
component of aggregate demand is the
Detailed Answer
B
4
Assuming there are no taxes (and no foreign sector), if the MPC is .8, the multiplier is
Detailed Answer
C
5
Assuming the net income tax rate is 25% (and there is no foreign sector), if the MPC is 0.8, the
multiplier is
Detailed Answer
A
6
Assuming there is no foreign sector, if the multiplier is 3, and the net income tax rate is 20%, the
MPC is
Detailed Answer
C
7
Assume there is no government or foreign sector. If the MPC is .75, a Rs.20 billion decrease in
planned investment will cause aggregate output to decrease by
Detailed Answer
A
8
If injections are less than withdrawals at the full-employment level of national income, there is
Detailed Answer
C
9
The accelerator theory of investment says that induced investment is determined by
Detailed Answer
C
10
The diagram that shows the mone y received and paid out by each sector of the
economy is the