Question 1 1 / 1 pts Which of the following will decrease planned aggregate expenditure? 0 Households prefers homemade meals to restaurant meals. C Government shut down schools as a part of major merger C Business profitability expected to go down Correct! All of the above Question 2 1 / 1 pts If there is a decrease in planned aggregate expenditure, we would expect equilibrium output to increase Correct! decrease remain same be indeterminant
1 / 1 pts Question 3 Consider the following components of a two sector Keynesian 45-degree diagram. PAE + 450 C=100 +0.8Y I' = 100 Y if potential GDP is equal to 1200, by how much does planned investment need to increase in order for GDP to equal potential GDP? 10 :20 30 Correct! 40
Question 4 1 / 1 pts A four-sector economy is described by the following equations: Cd = 1800 + 0.6 (Y -T) IP = 900 T = 100 G =100 X=50 Solve for the equilibrium level of output in this economy. C 2950 4975 5975 Correct! 6975