Question 1

The table shows a private open economy. All figures are in billions of dollars.  Refer to the above table. If net exports increased by $10 billion at each level of GDP, the equilibrium real GDP would be:

Accepted Answer

A)   Not determinate in the table
B)   $610
C)   $650
D)   $700E) C) and D)
F) A) and D)

Question 2

If aggregate expenditures rise by $200 billion and real GDP consequently rises by $500 billion, then the MPC in the economy must be 0.4.

Accepted Answer

A) True 
 B)False

Question 3

The $787-billion stimulus package enacted by the Federal government in 2009 to try to deal with the Great Recession was intended to:

Accepted Answer

A)   Shift the aggregate expenditures schedule down
B)   Close an inflationary expenditures-gap
C)   Bring inflation down
D)   Push the aggregate expenditures schedule upwardE) None of the above
F) A) and B)

Exam 11: The Aggregate Expenditures Model

The table shows a private open economy. All figures are in billions of dollars. Refer to the above table. If net exports increased by $10 billion at each level of GDP, the equilibrium real GDP would be:

Correct Answer
verified

If aggregate expenditures rise by $200 billion and real GDP consequently rises by $500 billion, then the MPC in the economy must be 0.4.

Correct Answer
verified

The $787-billion stimulus package enacted by the Federal government in 2009 to try to deal with the Great Recession was intended to:

Correct Answer
verified

Exam 11: The Aggregate Expenditures Model

The table shows a private open economy. All figures are in billions of dollars. Refer to the above table. If net exports increased by $10 billion at each level of GDP, the equilibrium real GDP would be:

Correct AnswerverifiedShow Answer

If aggregate expenditures rise by $200 billion and real GDP consequently rises by $500 billion, then the MPC in the economy must be 0.4.

Correct AnswerverifiedShow Answer

The $787-billion stimulus package enacted by the Federal government in 2009 to try to deal with the Great Recession was intended to:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified