Macroecon answer only

Macroeconomics Answer all 5 questions QUESTION 16 PKICKLEVEL REAL OUTPUT Figure 8.5 Using Figure 8.5, if the equilibrium real output is Q2 then: O A. Aggregate demand must be AD1. O B. Aggregate demand could be either AD, or AD2 depending on the level of aggregate supply. The equilibrium price level is P2. OC. OD. Aggregate supply must be AS1 and the equilibrium price level must be P. QUESTION 17 Disposable income is equal to: OA. Consumption + saving. O B. Consumption + imports + exports. Consumption + investment. OC Consumption + government expenditures + investment + net exports. OD QUESTION 18 Which of the following is not true about the marginal propensity to consume? A. It is equal to the change in consumption divided by the change in disposable income. B. It is equal to the slope of the consumption function. C. It is equal to 1 - MPS. D. It is always equal to or greater than 1. A. It is equal to the change in consumption divided by the change in disposable income. O B. It is equal to the slope of the consumption function. O C. It is equal to 1 - MPS. D. It is always equal to or greater than 1. QUESTION 19 6. If disposable income increases from $9,000 billion to $11,000 billion, and consumption increases from $9,500 billion to $11,000 billion, the MPC must be O A. 0.75. O B. 1.00. O C. 0.90. O D. 0.25. QUESTION 20 Holding other factors constant, if average prices in the U.S. economy fall, then the O A. Real balances effect will lead to a lower quantity of U.S. output demanded. O B. Foreign trade effect will lead to a higher quantity of U.S. output demanded. C. Interest rate effect will lead to a lower quantity of U.S. output demanded. O D. Profit effect will lead to a higher quantity of U.S. output demanded