Data on Output and Planned Aggregate Expenditure in Macroland Are

question 30

Multiple Choice

Data on output and planned aggregate expenditure in Macroland are given below:
Based on these data,the short-run equilibrium level of output is _________ and the income-expenditure multiplier equals ________.

• A) 3,000;1.0
• B) 5,000;1.2
• C) 5,000;1.5
• D) 5,000;2.0
• E) 6,000;5.0

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Definitions:

Mid-ocean Ridges

Mountainous formations under the sea, created by the shifting of earth's plates, which result in new ocean crust through volcanic processes.

Rising Mantle

The upward movement of the Earth's mantle, often leading to volcanic activity.

Divergent Boundary

A plate-tectonic boundary in which two plates move apart (diverge) relative to one another.

Convergent Boundary

A tectonic plate boundary where two plates move toward each other, often resulting in mountain building, earthquakes, or volcanic activity.