Please answer these multiple choice questions

5. If the government decreased its purchases of goods and services by $6,000, and this resulted in an eventual decrease in GDP and income of $20,000, the MPC would be equal to a 0.3. b ) 0.7 . C ) 1.33 . 3.33 6 AS Price level, P - AS, Q - AD2 AD1 Output, y Figure 1 Refer to Figure 1. A movement from point c to point d could be caused by a 2050 increase in government spending. decrease in the price of oil. decrease in social benefit. decrease in short-run aggregate supply. 7. People who want to work but have stopped looking for work because they could not find jobs after actively searching are called employed. unemployed. discouraged workers. empowered. Page 3 of 78. Suppose that the CPI in Gabon was 116 in 2017 and 124 in 2018. The inflation rate between those two years was a ) 6.5 percent. b ) 6.9 percent. C ) 7.3 percent. d ) 8 percent. 9. Typical problems of developing economies do NOT include: 2050 Undeveloped infrastructure. Low levels of investment. Dependence on primary products. A highly skilled and educated labour force. 10. Which one of the following is not an example of supply-side policy? Reducing interest rates to promote employment. there will be no pollution. pollution will be at the level where marginal social benefit equals zero. pollution will be at the level where marginal social cost equals zero. End of Section A Page 4 of 7