Selene's Mirror Company expects to sell $1,000,000 worth of mirrors and to produce $1,250,000 worth of mirrors in the coming year. The company purchases $300,000 worth of new equipment during the year. Sales for the year turn out to be $900,000. Actual investment by Selene's Mirror Company equals and planned investment equals Multiple Choice O $650,000; $550,000 $300,000; $250,000. $550,000; $450,000 GOO $450,000; $300,000 If shortrun equilibrium output equals 10,000, the incomeexpenditure multiplier equals 5, the mpc equals 0.8, and potential output (Y') equals 9,000, then transfers must be by approximately to eliminate any output gap. Multiple Choice 0 decreased; 250 decreased; 200 increased; 200 0 increased; 250 In Econland autonomous consumption equals 700, the marginal propensity to consume equals 0.80, net taxes are fixed at 50, planned investment is fixed at 100, government purchases are fixed at 100, and net exports are fixed at 40. The slope of the expenditure line is Multiple Choice 0 0.20. 0.80. 0.99. O O 0.90. O In the shortrun Keynesian model, if the mpc equals 0.8, then to increase planned aggregate spending by $20 billion at any output level, government spending must be increased by or net taxes must be decreased by Multiple Choice 0 $20 billion; $20 billion 0 more than $20 billion; more than $20 billion 0 less than $20 billion; less than $20 billion 0 $20 billion; more than $20 billion Data on after-tax income and consumption spending for the Adam Smith family are given in the accompanying table. $ 6 , 000 $ 15 , 000 moo 12,000 20,400 15,000 23,100 Based on these data, the Adam Smith family has a marginal propensity to consume equal to Multiple Choice 0 0.8. 0.6. 0.9. O O 0.75. O