Consider a Simple Macro Model with Demand-Determined Output

question 84

Multiple Choice

Consider a simple macro model with demand-determined output.Suppose the level of exports decreases unexpectedly by $6 billion.If the government wants to restore the initial equilibrium level of output it could,all other things equal,

• A)increase its purchases by more than $6 billion.
• B)increase its net tax revenues by $6 billion.
• C)increase its net tax revenues by less than $6 billion.
• D)increase its purchases by $6 billion.
• E)decrease its purchases by $6 billion.

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Definitions:

Stock Chart

A graphical representation of a stock's historical prices, volumes, and often times trading patterns.

Surface Chart

A type of chart used in three-dimensional data visualizations to represent data across a three-dimensional landscape.

Doughnut Chart

A graphical representation similar to a pie chart but with a blank center, enabling the display of multiple series of data in a compact and visually appealing format.

Bubble Chart

A type of data visualization that displays multiple circles (bubbles) in a two-dimensional plot, where the size and color of bubbles can represent additional data dimensions.