From the information provided in figure 23 3 y 1 is a

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101) From the information provided in Figure 23-3, Y 1 is (a) 800. (b) 3200. (c) 4000. (d) 6400. Answer: C Question Status: Previous Edition 102) From the information provided in Figure 23-3, Y 2 is
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844 Frederic S. Mishkin • Economics of Money, Banking, and Financial Markets, Seventh Edition 103) From the information provided in Figure 23-3, Y 1 is _____ and Y 2 is _____. 104) In the simple Keynesian framework, declines in planned investment spending that produce high unemployment can be offset by raising 105) An increase in government spending (a) increases equilibrium output by more than an equal increase in planned investment. (b) increases equilibrium output by the same amount as an equal increase in planned investment. (c) increases equilibrium output by less than an equal increase in planned investment. (d) has no effect on equilibrium output. (e) reduces equilibrium output by an amount equal to a reduction in planned investment. Answer: B Question Status: New 106) The Keynesian framework indicates that government can play an important role in determining aggregate output by 107) An increases in taxes Chapter 23 The Keynesian Framework and the ISLM Model 845 108) A tax cut 109) A tax cut (a) increases consumption expenditure by an amount greater than the tax cut. (b) increases consumption expenditure by an amount equal to the tax cut. (c) increases consumption expenditure by an amount that is less than the value of the tax cut. (d) has no effect on consumption expenditure. (e) reduces consumption expenditure by an amount that is less than the value of the tax cut. Answer: C Question Status: New
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