Question 180 / 1 point

If real GDP exceeds aggregate planned expenditure _____.

a.inventories accumulate and real GDP decreases

b.equilibrium expenditure increases until it equals real GDP

c.investment increases and aggregate planned expenditure increases

d.investment increases and aggregate planned expenditure increase until it equals real GDP

Question 19

__________ were the largest source of revenues in the projected federal budget for fiscal 201213.

a.Transfer payments

b.Personal income taxes

c.Corporate income taxes

d.Indirect taxes

Question 200 / 1 point

Assuming that a tax cut increases short run aggregate supply more than aggregate demand. Which of the following is true?

a.The price level remains constant.

b.Real GDP decreases but the price level rises.

c.Both real GDP and the price level fall.

d.Both real GDP and the price level increase.

e.Real GDP increases but the price level falls.

Question 210 / 1 point

The expenditure multiplier effect occurs because a change in ________.

a.income taxes induces a change in government expenditure

b.autonomous expenditure induces a change in induced expenditure

c.induced expenditure creates a change in government expenditure

d.the price level induces a change in consumption and investment

Question 220 / 1 point

An expansionary fiscal policy

Question options:

a.increases both the price level and real GDP in the long run.

b.decreases both the price level and real GDP in the long run.

c.raises only the price level in the short run.

d.has no effect on the price level in the long run.

e.raises only the price level in the long run.

Question 230 / 1 point

An increase in government expenditures

a.increases equilibrium GDP but has no effect on the price level in the short run.

b.increases the price level but has no effect on equilibrium GDP in the long run.

c.increases only equilibrium GDP in the short run.

d.increases equilibrium GDP and decreases the price level in the short run.

e.increases equilibrium GDP but has no effect on the price level in the long run.

Question 240 / 1 point

Which of the following economies has the largest multiplier?

a.Economy E without income taxes and imports but an MPC equal 0.45.

b.Economy C with both income taxes and imports.

c.Economy D with imports but no income taxes.

d.Economy A without income taxes and imports but with an MPC equal 0.85.

e.Economy B with income taxes but no imports.

Question 250 / 1 point

Consumption expenditure depends on ________.

a.wealth and the propensity to save

b.real GDP and expected future income

c.the price level expected future income and the real interest rate

d.disposable income expected future income and the real interest rate

Question 260 / 1 point

The curve that shows how total planned expenditure changes as real GDP changes is the

a.equilibrium expenditure curve

b.aggregate expenditure curve

c.consumption function

d.saving function

Do not explanation. Thanks a lot!