# Solved >   Table 9-1  OutputConsumptionInvestmentNet Exports 1000  800500100 15001200500100 20001600500100:1518333 …

Table 9-1

OutputConsumptionInvestmentNet Exports

1000  800500100

15001200500100

20001600500100

25002000500100

30002400500100

35002800500100

40003200500100

132. In Table 9-1, the equilibrium level of output is

a. 2,500.

b. 3,000.

c. 3,500.

d. 4,000.

133. In Table 9-1, at output of 4,000, inventories are

a. decreasing by 200.

b. increasing by 200.

c. increasing by 300.

d. decreasing by 300.

134. In Table 9-1, inventories are being depleted as long as output is below

a. 2,000.

b. 2,500.

c. 3,000.

d. 3,500.

135. In Table 9-1, inventories will be increasing as long as output is above

a. 1,000.

b. 1,500.

c. 2,000.

d. 3,000.

136. In the basic 45-degree line model, what is the effect of an increase in the price level?

a. There will be movement to the left on the expenditure line.

b. There will be movement to the right on the expenditure line.

c. The expenditure line will shift downward.

d. The expenditure line will shift upward.

137. In the basic 45-degree line model, what is the effect of a decrease in the price level?

a. The expenditure line will shift downward.

b. The expenditure line will shift upward.

c. There will be movement to the left on the expenditure line.

d. There will be movement to the right on the expenditure line.

138. Why does an increase in the price level cause a decrease in real GDP demanded?

a. Consumer wealth increases.

b. Net exports will increase.

c. Interest rates decrease and cause higher investment.

d. Net exports will decrease.

Figure 9-3

139. In Figure 9-3, equilibrium GDP is

a. \$2,000 billion.

b. \$3,000 billion.

c. \$4,000 billion.

d. \$5,000 billion.

140. In Figure 9-3, saving at equilibrium GDP is.

a. \$1,200 billion.

b. \$1,000 billion.

c. \$800 billion.

d. \$600 billion.

e. \$400 billion.

141. In Figure 9-3, investment plus net exports equals

a. \$200 billion.

b. \$400 billion.

c. \$600 billion.

d. \$800 billion.

e. \$1,200 billion.

142. In Figure 9-3, at \$3,000 billion GDP,

a. inventories will be falling, signaling businesses to decrease production.

b. inventories will be falling, signaling businesses to increase production.

c. planned saving increases planned investment.

d. inventories will be accumulating, signaling businesses to increase production.

143. In Figure 9-3, at \$5,000 billion GDP, inventories will be

a. falling, signaling businesses to increase production.

b. accumulating, signaling businesses to increase production.

c. accumulating, signaling businesses to cut production.

d. falling, signaling businesses to cut production.

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