Question 1. When real GDP exceeds aggregate planned expenditure

Question options:

a.firms experience unplanned increase in inventories.

b.firms experience no change in inventories.

c.firms experience unplanned decrease in inventories.

d.firms increase production.

e.firms employ more workers.

Question 20 / 1 point

Fiscal policy is the use of ________ to achieve the macroeconomic objectives of full employment and sustained economic growth.

a.the federal budget

b.government debt

c.government debt purchases

d.interest rate changes

Question 30 / 1 point

A government surplus arises if ____________.

a.government revenues exceed debt interest payments

b.the government makes interest payments on its debt

c.government revenues exceed government outlays

d.the government prints money to pay for its outlays

Question 40 / 1 point

The effect of a $100 million increase in government expenditures on real GDP will be

Question options:

a.the same as that of a $100 million decrease in autonomous taxes.

b.greater than that of a $100 million decrease in autonomous taxes.

c.less than that of a $100 million increase in autonomous transfers.

d.less than that of a $100 million decrease in autonomous taxes.

e.the same as that of a $100 million increase in autonomous transfers.

Question 50 / 1 point

The level of aggregate expenditure that occurs when aggregate planned expenditure equals real GDP is known as

a.induced expenditure.

b.aggregate demand.

c.autonomous expenditure.

d.equilibrium expenditure.

e.actual expenditure.