1. The multiplier effect represents permanent changes in investments or consumptions that are multiplied to get a change in equilibrium.
True
False
2. The U.S. trade deficit is where the value of U.S. imports is less than the value of U.S. exports.
True
False
3. Automatic stabilizers are discretionary fiscal policies.
True
False
4. The amount of real planned consumption which does not depend at all on actual real disposable income is called your adjusted disposable income.
True
False
5. The government providing cheese to students at lunch can produce a direct expenditure offset.
True
False
6. The government providing cheese to students at lunch can produce a direct expenditure offset.
True
False
7. The demand curve is found by adding together the individual quantities demanded by all the buyer in a market.
True
False
8. If aggregate demand increases for a given level of long-run aggregate supply, the price level must increase.
True
False
9. In the Keynesian Model, the equilibrium level of real GDP per year is completely demand determined.
True
False