Whenever GDP is below its equilibrium level c Whenever GDP exceeds its

Whenever gdp is below its equilibrium level c

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Whenever GDP is below its equilibrium level c) Whenever GDP exceeds its equilibrium level d) If exports exceed imports Assume the level of investment is independent of the level of GDP. If the interest rate rises, the investment schedule will: a) Shift to the right b) Shift to the left c) Shift downward d) Shift upward When planned injections of investment, government spending, and exports equal leakages of saving, taxes, and imports: a) Aggregate expenditures will equal GDP b) Consumption plus injections will be greater than aggregate expenditures c) Net exports will be zero d) Output will be below its equilibrium level All else equal, if domestic consumers begin to spend a greater fraction of their consumption expenditures on foreign-produced goods: a) Aggregate expenditures and GDP will both increase b) Aggregate expenditures and GDP will both decrease c) Exports will also rise, offsetting the increase in imports d) The multiplier will increase If the MPC is .75, government could eliminate a $60 recessionary expenditure gap by: a) Increasing government spending by $240 b) Reducing lump-sum taxes by $80 c) Reducing lump-sum taxes by $60 d) Balancing its budget An increase in the price level will: a) Increase net exports b) Reduce the value of household debt and increase investment c) Increase production costs and reduce short-run aggregate supply d)
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