ECN 211 Study Guide - Midterm Guide: Output Gap, Fiscal Multiplier, Consumption Function

Which of the following is eliminated when the economy's output is equal to full-employment GDP?

a. The real GDP gap

b. Leakages and injections

c. The MPC

d. The multiplier

At equilibrium real GDP in a private closed economy:

a. the MPC must equal the APC.

b. the slope of the aggregate expenditures schedule.

c. aggregate expenditures and real GDP are equal.

d. planned saving and consumption are equal.

 

At the equilibrium GDP for a private open economy:

 

A. Planned savings and consumption are equal.

B. The slope of aggregate expenditure schedules equals the MPS.

C. The MPC must equal the APC.

D. Aggregate expenditures and real GDP are equal.