In a simple model with no government or foreign sector, the change in unplanned inventory at equilibrium is
A. dependent upon the amount of consumption
B. equal to output minus consumption
C. zero
D. always positive
E. usually negative
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If there is no government or foreign sector and planned investment equals planned saving, then
A. actual output is equal to planned spending on consumption and investment
B. consumption plus investment equals income
C. the quantity of output produced is equal to aggregate demand
D. there are no unplanned inventory changes
E. all of the above
Assume a model with no government or foreign sector. If actual output is $13.1 trillion while aggregate demand is $13.2 trillion, we know that
A. the magnitude of unintended inventory adjustments is - $100 billion
B. the magnitude of unintended inventory adjustments is + $100 billion
C. the magnitude of unintended inventory adjustments is + $10 billion
D. the actual income level is above its equilibrium
E. there currently is an excess supply of goods and services
Assume a simple model without any government. If an increase in autonomous investment of 40 leads to an increase in consumption of 160, then the marginal propensity to save is
A. 0.1
B. 0.2
C. 0.25
D. 0.4
E. 0.8
In a model with no government or foreign sector, if saving is defined as S = - 200 + (0.1)Y and investment is Io = 200, what is the equilibrium level of consumption?
A. 3800
B. 3600
C. 1800
D. 2000
E. 1000
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