True or False Please circle your response and if False, state why. Note: adding not to a sentence does not provide an explanation as to why a statement is false.
1. True or False: AD = C+I+G+NX
2. True or False: The deficit is the sum of yearly government debts.
3. True or False: If the macroeconomic equilibrium is above the full employment equilibrium, the economy is in an inflationary situation.
4. True or False: If the European economy is booming and US exports increase, aggregate demand (AD) increases.
5. True or False: Autonomous consumption changes with the amount of a household’s income.
6. True or False: If the mpc is 0.8 and government spending increases by $10 billion, equilibrium Y will increase by $50 billion.
7. True or False: A progressive income tax would place higher tax rates on people in lower income brackets.
8. True or False: Contractionary policies stimulate the economy.
9. True or False: If worker productivity increases, aggregate supply (AS) increases.
10. True or False: Net Exports (NX) = Exports (X) Imports (M)