10 terms

# ECON FINAL number questions

###### PLAY
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: