683 #
© 2014 Pearson Canada Inc.#Situation 20- 1
Assume a closed economy with no government. Suppose that autonomous consumption
equals $400, planned investment equals $500, and the mpc equals 0.9.
Using the information in Situation 20-1, if aggregate output is equal to $10,000, then
unplanned inventory investment equals ____.
A) -$1000
B) -$100
C) $0
D) $100
Answer: D
Diff: 2 Type: MC Page Ref: 546 - 547
Skill: Applied
Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output
Using the information in Situation 20-1, if aggregate output equals $8,000, the unplanned
inventory investment equals ____.
A) -$100
B) $0
C) $100
D) $500
Answer: A
Diff: 2 Type: MC Page Ref: 546 - 547
Skill: Applied
Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output
Using the information in Situation 20-1, the equilibrium level of aggregate output is
____.
A) $900
B) $8,000
C) $9,000
D) $10,000
Answer: C
Diff: 2 Type: MC Page Ref: 546 - 547
Skill: Applied
Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output