SOLVED

The Peruvian economy can be characterized by Equation 9.2. EQUATION 9.2: C = 400 + 0.6Yd Taxes = 600 Equilibrium Output = $4,000 41) Refer to Equation 9.2. At equilibrium, government purchases in Peru is A) 2,040. B) 1,560. C) 1,440. D) cannot be determined from the given information 42) Refer to Equation 9.2. At equilibrium, saving in Peru equals A) 960. B) 1,440. C) 1,560. D) 2,040. 43) Refer to Equation 9.2. At equilibrium, leakages in Peru equal A) 2,040. B) 1,560. C) 1,440. D) 960. 44) The economy is in equilibrium when [I + G = S + T], assuming there is A) no government or taxes. B) no foreign trade. C) positive net exports. D) negative net exports. 45) Assuming there is no foreign trade in the economy, equilibrium is achieved when ________ equal [saving + net taxes – investment]. A) investment expenditures B) government purchases C) consumption expenditures D) net exports Refer to the information provided in Figure 9.1 below to answer the questions that follow. Â Figure 9.1 Â 46) Refer to Figure 9.1. Aggregate expenditures = aggregate output at $ ________ billion. A) 1,500 B) 2,000 C) 3,000 D) 4,000 47) Refer to Figure 9.1. In this economy, 0.5 represents the A) MPC. B) MPS. C) multiplier. D) both A and B 48) Refer to Figure 9.1. Injections = leakages A) when income = zero. B) when consumption = saving. C) at equilibrium. D) when output = investment. 49) Refer to Figure 9.1. At equilibrium, $1,000 billion represents A) the part of consumption that is dependent on income. B) the part of consumption that is not dependent on income. C) equilibrium income. D) both A and B are correct 50) Refer to Figure 9.1. Suppose that the consumption function is C = 200 + 0.4Yd and taxes are $200 billion, at equilibrium the value of injections are A) $1,080 billion. B) $840 billion. C) $720 billion. D) $650 billion.