Past Exam for ECON 2006 - Principles of Economics with McLeod at Virginia Tech (VT)

Exam Information

Material Type:Exam 2
Class:ECON 2006 - Principles of Economics
University:Virginia Polytechnic Institute And State University
  • Future Economic Output
  • Production Period
  • Inventory Changes
  • Increase Output
  • Pessimistic
  • Equilibrium Level
  • Printing Money
  • The Economy
  • Actual Investment
  • Aggregate Expenditure
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---- r EeON 2006-91641 TEST 2 McLeod FORMA / 1. Suppose you know that the consumption function for an economy with no government is given by e = 250 + , . 9Y. If planned investment decreases by 200 because firms are pessimistic about the future economic output, what should happen to the equilibrium level of output? A) It will increase by 200. B) It will decrease by 200 C) It will increase by 1000 ~t will decrease by 1000 ~ will increase by 2000 F) It will decrease by 2000 G) There is not enough information to answer this question because we do not know the initial amount of planned investment. /2. You know that in an economy with no government that e = 500 + .75 Y'. and thatlp = 4. 00. Suppose output, i/ Y = 4000. Which of the following statements is true? ? A-E :::.- .5 ~ CJ:) ~~~:.d Aggregate Expenditure is greater tha~ output, so firms will increase output in th: next p~~duct~on ~lanned Aggregate Expenditure is greater than output, so firms will decrease output in the n...

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