Question: Hi! Please help me find the correct answer in the following multiple-choice questions! The equilibrium level of output can be written as Y = AD

Hi! Please help me find the correct answer in the following multiple-choice questions!

  1. The equilibrium level of output can be written as Y = AD or Y = C + I or Y = Ca + I + mpcY or Y = (Ca + I)(1/1-mpc). Given the consumption above C = 100 + 0.60Y, how much will be the expenditure multiplier (assuming there are only the household and business sectors in the economy)?

A. 1.7

B. 2.5

C. 4

D. 5

2. The equilibrium level of output can be written as Y = (Ca + I)(1/1-mpc). If consumption is given as C = 100 + 0,60Y and investment spending I = 30, how much is the equilibrium level of output Y?

A. 130

B. 175

C. 221

D. 325

E. 520

3. In the short run, the AD-AS model shows that actual real GDP produced in the economy is

A. greater than potential real GDP

B. less than potential real GDP

C. equal to potential real GDP

D. any of the above is possible

4. When the labor market in the macroeconomy is at full employment, the actual real GDP produced in the product market is

A. greater than potential real GDP

B. less than potential real GDP

C. equal to potential real GDP

D. any of the above is possible

5. A country finds itself in a recession, with both real GDP and unemployment declining but with price level and inflation rising. Using the AD-AS model, this recession is caused by

a. A positive demand shock

b. A positive supply shock

c. A negative supply shock

d. A negative demand shock

6. A country finds itself in a recession with its real GDP and price level declining and unemployment rate increasing. Using the AD-AS model, this recession is caused by

a. A positive demand shock

b. A positive supply shock

c. A negative supply shock

d. A negative demand shock

7. A country is going through an economic expansion with its real GDP and price level increasing and unemployment declining. Using the AD-AS model, this expansion is due to

a. A positive demand shock

b. A positive supply shock

c. A negative supply shock

d. A negative demand shock

8. The pandemic lockdown that reduced mobility of people and prevented them going to markets, shops, recreation areas, etc. to purchase good and services caused a

a. A positive demand shock

b. A positive supply shock

c. A negative supply shock

d. A negative demand shock

9. The pandemic lockdown that increased transport costs of firms due to border controls and increased their operating costs to comply with health protocols caused a

a. A positive demand shock

b. A positive supply shock

c. A negative supply shock

d. A negative demand shock

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