1 A) equal to the change in government spending B) smaller than—and opposite in sign to—that associated with an equal change in taxes C) smaller than—and of the same sign as—that associated with an equal change in net exports D) larger than—and opposite in sign to—that associated with an equal change in taxes 2 A) $10 billion below full-employment GDP B) $10 billion above full-employment GDP C) $40 billion below full-employment GDP D) $40 billion above full-employment GDP 3 A) fall by $2 billion B) fall by $18 billion C) fall by $6 billion D) fall by $4 billion 4 A) GDP exceeds the level of current expenditures B) GDP is at its equilibrium level C) current expenditures exceed the level of GDP and GDP will fall D) GDP is below its equilibrium level 5 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0217511447/883756/ch28_q5.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (48.0K)</a>]]> A) $150 B) $200 C) $250 D) $300 6 A) at the equilibrium level of GDP B) whenever GDP is below its equilibrium level C) whenever GDP exceeds its equilibrium level D) if exports exceed imports 7 A) shift to the right B) shift to the left C) shift downward D) shift upward 8 A) aggregate expenditures will equal GDP B) consumption plus injections will be greater than aggregate expenditures C) net exports will be zero D) output will be below its equilibrium level 9 A) aggregate expenditures and GDP will both increase B) aggregate expenditures and GDP will both decrease C) exports will also rise, offsetting the increase in imports D) the multiplier will increase 10 A) increasing government spending by $240 B) reducing lump-sum taxes by $80 C) reducing lump-sum taxes by $60 D) balancing its budget
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