688 #
© 2014 Pearson Canada Inc.#
If net exports decrease by 250 and the mpc is 0.75, equilibrium aggregate output ____.
A) increases by 1000
B) increases by 750
C) decreases by 750
D) decreases by 1000
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
Aggregate output is ____ related to autonomous consumer expenditure, and is
____ related to planned investment spending.
A) negatively; negatively
B) negatively; positively
C) positively; negatively
D) positively; positively
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
Aggregate output is ____ related to autonomous consumer expenditure, and is
____ related to the level of taxes.
A) negatively; negatively
B) negatively; positively
C) positively; negatively
D) positively; positively
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
Aggregate output is increased by a decrease in ____.
A) autonomous consumption
B) government spending
C) planned investment
D) net taxes
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