Refer to exhibit 10 2 which of the following is

24. Refer to Exhibit 10-2. Which of the following is correct about point M?
a. TE is $4,500 billion and TP is only $1,500 billion.
b. TP is $4,500 billion and TE is only $1,500 billion.
c. TE is $7,500 and TP is only $5,500 billion.
d. TP is only $7,500 billion and TE is only $5,500 billion.
e. TE is $3,000 billion and TP is only $1,500 billion.

ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
NATIONAL STA
NDARDS:
United States - BUSPROG: Analytic
LOCAL STANDA
RDS:
United States - OH - Default City - DISC: Understanding and applying - DISC:
Understanding and applying economic models
KEYWORDS: Bloom's: Application
25. Refer to Exhibit 10-2. If autonomous consumption increases, the TE curve will shift ____________ and the new level
of equilibrium Real GDP will be ___________ than $4,500.
d
POINTS: 1
DIFFICULTY: Moderate
NATIONAL STA
NDARDS:
United States - BUSPROG: Analytic
LOCAL STANDA
RDS:
United States - OH - Default City - DISC: Understanding and applying - DISC:
Understanding and applying economic models
KEYWORDS: Bloom's: Application
NOTES: New
26. Refer to Exhibit 10-2. If autonomous investment decreases, the TE curve will shift ____________ and the new level
of equilibrium Real GDP will be ___________ than $4,500.
b
POINTS: 1
DIFFICULTY: Moderate
NATIONAL STA
NDARDS:
United States - BUSPROG: Analytic
LOCAL STANDA
RDS:
United States - OH - Default City - DISC: Understanding and applying - DISC:
Understanding and applying economic models
KEYWORDS: Bloom's: Application
NOTES: New
27. Total production

b
POINTS: 1
DIFFICULTY: Easy
NATIONAL STA
NDARDS:
United States - BUSPROG: Analytic
LOCAL STANDA
RDS:
United States - OH - Default City - DISC: Understanding and applying - DISC:
Understanding and applying economic models
KEYWORDS: Bloom's: Comprehension
28. When total production is greater than total expenditures,
a. the economy is in disequilibrium.
b. there are increases in inventory.
c. total output will decrease.
d. all of the above
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
NATIONAL STA
NDARDS:
United States - BUSPROG: Analytic
LOCAL STANDA
RDS:
United States - OH - Default City - DISC: Understanding and applying - DISC:
Understanding and applying economic models
KEYWORDS: Bloom's: Comprehension