In an Open economy leakage to imports ____________ the value of the multiplier ? A. reduce B. increase C. do not change D. None of the above

The total multiplier for the economy will reflect ? A. MPC and MPT B. MPT and MPZ C. MPC and MPZD. MPC, MPT and MPZ

For given government spending and taxation the government budget deficit will grow in _________ and decline in __________? A. booms, booms B. recession, recession C. booms, recessionsD. recessions, booms

If the government increases spending and raises taxes by just enough to finance this increase it will ? A. leave output unchangedB. increase output C. reduce output D. increase the MPC

If a result of households wish to save more there is a change in equilibrium income and no change in equilibrium saving this is an example of ? A. market imperfection B. the law of diminishing returnsC. the paradox of…

The multiplier is calculated as___________? A. 1(1-MPC) B. 1/MPS C. 1/MPCD. a or b

When investment is assumed to autonomous the slope of the AD schedule is determined by the ? A. marginal propensity to invest B. disposable incomesC. marginal propensity to consume D. average propensity to consume

Short-run equilibrium output means that aggregate demand __________ actual output? A. is less thanB. equals C. is greater than D. fluctuates around

When we refer to the hidden economy we mean unrecorded income owing to ? A. tax evasion B. poor statistics C. the lags between statistical collection and publication D. smuggling

Real GNP measures income ? A. including non-market activitiesB. adjusted for inflation C. including externalities D. including tax evasion