Question 1
Refer to the information provided in Table 23.8 below to answer the question(s) that follow.
Refer to Table 23.8. The equilibrium level of aggregate output equals
◦ $3,000 million.
◦ $4,000 million.
◦ $5,000 million.
◦ $6,000 million.
Question 2
Refer to the information provided in Table 23.8 below to answer the question(s) that follow.
Refer to Table 23.8. Which of the following statements is
false?
◦ At an output level $4,000 million, there is a $400 million unplanned inventory decrease.
◦ If aggregate output equals $4,000 million, then aggregate saving equals $1000 million.
◦ The
MPC for this economy is 0.8.
◦ At an output level of $3,000 million, there is a $600 million unplanned inventory decrease.
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