Question
13. If the autonomous investment in this economy increases by 20 billion what would be the change in the equilibrium level of income? A. Equilibrium
13. If the autonomous investment in this economy increases by 20 billion what would be the change in the equilibrium level of income?
A. Equilibrium income increases by 20 billion
B. Equilibrium income decreases by 20 billion
C. Equilibrium income increases by 100 billion
D. Equilibrium income decreases by 100 billion.
16. Other things remaining constant if the interest rate increases the autonomous investment demand curve:
A. will shift upward
B. will shift downward
C. will remain constant
D. may shift upward or downward depending on whether total increases or decreases
18. What is the type and amount of the gap that exists in this economy?
A. there is an inflationary gap equal to 100 billion.
B. There is a recessionary gap equal to 100 billion.
C. There is an inflationary gap equal to 20 billion.
D. There is a recessionary gap to 20 billion
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