The following information are about the economy of Happy Land: Autonomous consumption expenditure is $100 billion, and the marginal propensity to consume is 0.9. Investment is $450 billion, government purchases of goods and services are $400 billion, and taxes are a constant $400 billion—they do not vary with income.  Exports are $350 billion, and imports are 15 percent of income. The government of Happy Land makes no transfer payments. Based upon the information shown above, what is the total autonomous expenditure? $______billion

If the bank holds 100 percent reserves, the simple money multiplier is  

Which of the following statements is (are) correct? i. When the interest rates rise, the quantity of money demanded decreases because people move funds from interest-bearing assets into money. ii. The opportunity cost of holding money balances increases when the purchasing power of money rises. iii. In real business cycle models, business cycles exist because of changes in technology. iv. Demand-pull inflation can start when money wages rise but the price level does not change. v. A decrease in the required reserve ratio decreases the quantity of reserves banks must hold as legally required reserves and decreases the quantity of money. vi. The expanded use of credit cards will cause the demand curve for real money to shift the left. vii. In real business cycle models, the quantity of money can increase the real interest rate.

Suppose that, due to an increase in expected future profit, investment increases by $10 billion. Which of the following would reduce the effect of this increase in autonomous expenditure on equilibrium real GDP?

Other things being equal, a decreased supply of natural resources would be represented on a production possibilities curve by a (an):

Which of the following is NOT a potential start of a demand-pull inflation?

If the Fed carries out an open market operation and sells U.S. government securities, the federal funds rate ________ and the quantity of reserves ________.

Which of the following would shift the aggregate demand curve leftward year after year?

The government wants to increase aggregate expenditure by $12 billion. If the multiplier is 3, by how much should the government increase its spending on goods and services?

The Philips curve shows the relationship between