MC Qu. 31-113 (Algo) Suppose the economy's multiplier is... Suppose the economy's multiplier is 4. Other things equal, a $25 billion decrease in government expenditures on national defense will cause equilibrium GDP to 5 points Multiple Choice eBook O decrease by $100 billion. O decrease by $150 billion. O increase by $100 billion. O decrease by $25 billion. O remain unchanged.2 MC Qu. 31-120 (Algo) If a lump-sum income tax... If a lump sum income tax of $30 billion is levied and the MPS is 0.4, the consumption schedule will shift 5 points Multiple Choice ebook O downward by $18 billion. O upward by $18 billion. O downward by $30 billion. O downward by $12 billion.3 MC Qu. 31-93 (Algo) If the multiplier in an... If the multiplier in an economy is 10, a $20 billion increase in net exports will 5 points Multiple Choice eBook O increase GDP by $200 billion. O reduce GDP by $2 billion. O decrease GDP by $200 billion. O increase GDP by $20 billion.4 MC Qu. 32-42 (Algo) Suppose that real domestic output in... Suppose that real domestic output in an economy is 20 units, the quantity of inputs Is 4, and the price of each input is $4. The level of productivity is 5 points Multiple Choice ebook O 5. O 20. O 4. O 16.5 MC Qu. 31-265 (Algo) In a private closed economy... In a private closed economy where MPC = 0.8, if consumers reduce their spending by $20 billion and firms cut investments by $10 billion, then equilibrium GDP will decrease by 5 points Multiple Choice eBook O $150 billion. O $30 billion. O $240 billion. O $8 billion.6 MC Qu. 30-124 (Algo) If the inflation rate is.. If the Inflation rate is 5 percent and the real interest rate is 6 percent, the nominal interest rate is 5 points Multiple Choice eBook O 11 percent. O 1 percent. O 0 percent. O 5 percentMC Qu. 31-163 (Algo) If the MPC in an... If the MPC In an economy is 0.8, a $30 billion increase in government spending will ultimately increase consumption by 5 points Multiple Choice eBOCK O $120 billion. O $30 billion. O $0.8 billion. O $150 billion.8 MC Qu. 31-195 (Algo) If the MPC is... If the MPC is 0.8 and the equilibrium GDP is $20 billion below the full-employment GDP, then the size of the recessionary expenditure gap is 5 points Multiple Choice eBook O $4 billion. O $20 billion. O $16 billion. O $10 billion.9 MC Qu. 30-103 (Algo) Assume a machine that has a... Assume a machine that has a useful life of only one year costs $2,000. Assume, also, that net of such operating costs as power, taxes, and so forth, the additional revenue from the output of this machine is expected to be $2,300. The expected rate of return on this machine is 5 points Multiple Choice ebook O 15 percent. O 30 percent. O 20 percent. O 3 percent.10 MC Qu. 31-267 (Algo) The marginal propensity to save... The marginal propensity to save is 0.1. Equilibrium GDP will decrease by $30 billion if the aggregate expenditures schedule decreases by 5 points Multiple Choice eBook O $3 billion. O $30 billion. O $27 billion. O $10 billion.11 MC Qu. 30-123 (Algo) If the nominal interest rate is... If the nominal interest rate is 18 percent and the real interest rate is 8 percent, the inflation rate is 5 points Multiple Choice eBock O 10 percent. O 18 percent. O 26 percent. O 8 percent12 MC Qu. 32-43 (Algo) Suppose that real domestic output in... Suppose that real domestic output in an economy is 25 units, the quantity of inputs is 20, and the price of each input is $10. The per-unit cost of production in the economy described is 5 points Multiple Choice ebook O $8. O $50. O $5. O $2.50.13 MC Qu. 30-46 (Algo) If the marginal propensity to consume... If the marginal propensity to consume is 0.9 then the marginal propensity to save must be 5 points Multiple Choice eBook O 0.1. O 1 . O 1.1. O 0.9.14 MC Qu. 30-204 (Algo) If disposable income is... If disposable income is $900 billion when the average propensity to consume is 0.8, It can be concluded that saving is 5 points Multiple Choice eBook O $180 billion. O $720 billion. O $900 billion. O $200 billion.15 MC Qu. 30-149 (Algo) If the MPC is... If the MPC is 0.8 and investment increases by $4 billion, the equilibrium GDP will 5 points Multiple Choice eBook O increase by $20 billion. O increase by $3.2 billion. O decrease by $5.00 billion. O increase by $5.00 billion.16 MC Qu. 32-225 (Algo) Suppose that an economy produces... Suppose that an economy produces 2,400 units of output, employing 30 units of input, and the price of the input is $30 per unit. The level of productivity in this economy is 5 points Multiple Choice eBook O 80 O 60. O 70. O 50.17 MC Qu. 32-23 (Algo) Suppose that technological advancements stimulate... Suppose that technological advancements stimulate $4 billion in additional investment spending. If the MPC = 0.8, how much will the change in investment increase aggregate demand? 5 points Multiple Choice eBook O $20 billion O $4 billion O $32 billion O $22.2 billion18 MC Qu. 30-162 (Algo) If a... If a $200 billion increase in investment spending creates $200 billion of new income in the first round of the multiplier process and $180 billion in the second round, the MPC in the economy is 5 points Multiple Choice eBock O 0.9. O 0.1. O 0.2. O 0.5.19 MC Qu. 32-60 (Algo) The table gives information about the... Real Domestic 5 Input Quantity Output points 100 200 150 300 200 400 eBook The table gives information about the relationship between input quantities and real domestic output in a hypothetical economy. If the price of each input is $10, the per-unit cost of production in the economy is Multiple Choice O $5.00. O $1.00. O $2.50. O $0.50.20 MC Qu. 30-26 (Algo) (Advanced analysis) Assume the following consumption... (Advanced analysis) Assume the following consumption schedule: C= 20 +0.9Y, where Cis consumption and Y is disposable income. At a(n) $800 level of disposable income, the level of saving is 5 points Multiple Choice ebook O $60. O $740. O $180. O $18