Question :
71) In a simple macro model with a constant price : 1384386
71) In a simple macro model with a constant price level, a decrease in the net tax rate causes the AE curve to
A) shift parallel downward.
B) shift parallel upward.
C) rotate downward.
D) rotate upward.
E) remain stationary.
72) Suppose that the marginal propensity to consume out of disposable income is 0.6 and the marginal propensity to import is 0.14. If the net tax rate is 0.1, then what is the marginal propensity to spend in this economy?
A) 0.30
B) 0.40
C) 0.46
D) 0.50
E) 0.60
73) Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are: C = 150 + 0.84Y, I = 400, G = 700, T = 0, X = 130, IM = 0.08Y. Equilibrium national income is
A) 1816.
B) 5750.
C) 7307.
D) 7935.
E) 17 250.
74) Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are: C = 150 + 0.84Y, I = 400, G = 700, T = 0, X = 130, IM = 0.08Y. Desired consumption expenditure at equilibrium national income is
A) 1675.44.
B) 4060.04.
C) 4830.00.
D) 4980.00.
E) 6815.40.
75) Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are: C = 150 + 0.84Y, I = 400, G = 700, T = 0, X = 130, IM = 0.08Y. The trade balance at equilibrium national income is a
A) deficit of 504.8.
B) deficit of 460.0.
C) deficit of 330.0.
D) surplus of 125.0.
E) surplus of 15.3.
76) Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are: C = 150 + 0.84Y, I = 400, X = 130, IM = 0.08Y, T = 0. Equilibrium national income is 5000 when G is equal to
A) -40.
B) 520.
C) 580.
D) 740.
E) 812.
77) Consider a simple macro model with a constant price level and demand-determined output. When national income falls short of desired aggregate expenditures, unplanned inventory ________ will induce firms to ________ the rate of output production.
A) depletion; lower
B) depletion; raise
C) buildup; lower
D) buildup; raise
E) at zero; maintain the current
78) Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are: C = 120 + 0.86Y, I = 300, G = 520, T = 0, X = 180, IM = 0.12Y. Equilibrium national income is
A) 2037.48.
B) 3615.24.
C) 4000.00.
D) 4307.70.
E) 8000.00.
79) Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are: C = 60 + 0.43Y, I = 150, G = 260, T = 0, X = 90, IM = 0.06Y. Equilibrium national income is
A) 560.00.
B) 888.89.
C) 1142.85.
D) 1302.33.
E) 1513.50.
80) Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are: C = 60 + 0.43Y, I = 150, G = 260, T = 0, X = 90, IM = 0.06Y. The trade balance at equilibrium national income is
A) a deficit of 36.67.
B) a deficit of 21.43.
C) zero.
D) a surplus of 21.43.
E) a surplus of 36.67.
