The Economy Is in Equilibrium,TP = TE,and Real GDP Is

question 140

Multiple Choice

The economy is in equilibrium,TP = TE,and Real GDP is $4,000 billion.The MPC is 0.60,the multiplier is operative,and idle resources exist at each expenditure round.Autonomous investment spending rises by $13 billion.As a result,the __________ curve shifts __________,inventory levels unexpectedly __________,business firms __________ the quantity of goods and services they produce,and Real GDP __________ by __________.

• A) TE,downward,rise,increase,rises,$32.5 billion
• B) TE,upward,fall,increase,rises,$101.5 billion
• C) TE,upward,fall,decrease,rises,$32.5 billion
• D) TE,upward,fall,increase,rises,$32.5 billion
• E) TP,upward,fall,increase,rises,$101.5 billion

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Definitions:

Policy Assessment Matrix

A tool utilized to evaluate and analyze the effectiveness or impact of a policy through a systematic framework.

Positive Outcomes

Favorable or beneficial results arising from a particular action, intervention, or policy, often measured against predefined goals or benchmarks.

Implementation

The process of putting a decision or plan into effect; execution.

Evidence-Based Policy

Evidence-based policy involves making decisions about policy development and implementation based on scientific evidence and data, aiming to produce the most effective outcomes.