Refer to the information provided in Table 23.10 below to answer the question(s) that follow.
Table 23.10
-Refer to Table 23.10. Which of the following statements is false?
A) At an output level $2,000, there is a $200 million unplanned inventory decrease.
B) If aggregate output equals $2,000 million, then aggregate saving equals $700 million.
C) The MPC for this economy is 0.75.
D) At an output level of $3,600 million, there is a $200 million unplanned inventory increase.

Question

Refer to the information provided in Table 23.10 below to answer the question(s) that follow.
Table 23.10 
-Refer to Table 23.10. Which of the following statements is false?
A) At an output level $2,000, there is a $200 million unplanned inventory decrease. 
B) If aggregate output equals $2,000 million, then aggregate saving equals $700 million. 
C) The MPC for this economy is 0.75. 
D) At an output level of $3,600 million, there is a $200 million unplanned inventory increase.

Quizplus · Accepted Answer

According to Table 23.10, if aggregate output equals $2,000 million, then aggregate saving equals $600 million (not $700 million as stated in option B). Therefore, option B is false. Option A is true, as a $200 million unplanned inventory decrease occurs at an output level of $2,000 million. Option C is also true, as the MPC for this economy is calculated to be 0.75. Option D is also true, as a $200 million unplanned inventory increase occurs at an output level of $3,600 million.

Refer to the Information Provided in Table 23