a policy for growth of an economy where the current account of the balance of payments is kept in balance

a tax or form of government expenditure that has the effect of reducing the size of the multiplier

a discretionary fiscal policy that aims to smooth out the business cycle

a form of monetary policy that has the effect of reducing the size of the multiplier

the tendency for inflation to fall as unemployment rises

0.475

1.711

2.105

2.29

2.595

increase by 5000.

increase by 2000.

decrease by 2000.

decrease by 5000.

no change required.

monetary and fiscal policies

economic growth

economic value of goods and services

the economic relationship between supply and the quantity demanded

economic disparities

Individuals expect to live

for more years after retirement without any change in total lifetime resources.

Governments raise the

proportion of earned income they collect from households.

The proportion of the

working-age population who are employed rises.

People stop working earlier

in life but keep their annual spending patterns unchanged.

Households choose to

have more children while keeping the same total family income.

Government raises subsidies

paid to full-time students.

None of the other answers is correct

200 increase in autonomous consumption would close the output gap.

1,000 increase in autonomous consumption would close the output gap.

200 reduction in autonomous consumption would close the output gap.

1,000 reduction in autonomous consumption would close the output gap.

Equilibrium output is 10,000, so no policy adjustment is needed.

2019

2017

2020

2014

2015

2023

2016

120

60

80

0

110

160

100

Decrease in national saving, rise in real interest rate.

Increase in national saving, fall in investment.   

Increase in investment, rise in the real interest rate. 

Decrease in national saving, rise in investment. 

Increase in investment, fall in the real interest rate.

None of the other answers are correct.

There will be no change in the aggregate output.

This economy is experiencing an increase in the level of unplanned inventories and this change in inventories will cause producers to decrease their production.