Advertisement Upgrade to remove ads

the economy is in equilibrium

consumption is $141 billion, planned investment is $15 billion, and saving is $15 billion in a private, closed economy. At this level:

downward by $10 billion

if a lump-sum tax of $40 billion is levied and the MPS is .25, then the saving schedule will shift:

$25 billion

assume that the marginal propensity to consume in an economy is 0.75. If the economy's full-employment real GDP is $900 billion and its equilibrium real GDP is $800 billion, there is a recessionary expenditure gap of:

increase GDP by $50 billion

if a government raises its expenditures by $50 billion and at the same time levies a lump-sum tax of $50 billion, the net effect on the economy will be to:

$125 billion

if the MPC in an economy is 0.8, government could eliminate a recessionary expenditure gap of $100 billion by cutting taxes by:

increase it by $50 billion

in an economy, the value of inventories rose from $100 billion in 2006 to $150 billion in 2007. In calculating total investment for 2007, national income accountants would:

$75 billion

a nation's capital stock was valued at $500 billion at the start of the year and $575 billion at the end. Consumption of private fixed capital in the year was $35 billion. Assuming stable prices, net investment was:

4.5 percent

a nation has a population of 300 million people. Of these, 80 million are retired, in the military, in institutions, or under 16 years old. There are 210 million who are employed and 10 million who are unemployed. What is the unemployment rate?

$480 billion in potential output

if the natural rate of unemployment was 6 percent, the current unemployment rate was 12 percent, and the nominal GDP was $4,000 billion, then according to Okun's law the economy would have sacrificed:

3.4%

if the consumer price index was 166.6 in one year and 172.2 in the next year, then the rate of inflation from one year to the next was:

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set