The table given below shows the levels of national income (Y) and the corresponding levels of saving (S) , investment (I) , export (X) , and import (M) of an open economy.
Table 10.2
-Consider the economy described in Table 10.2. If autonomous saving decreases by $200, what will happen at the current equilibrium level of income?
A) Autonomous consumption spending will also decrease by $200, and so no change in equilibrium income occurs.
B) Total leakages in the economy will exceed total injections.
C) There will be pressure on real GDP to rise.
D) There will be pressure on the economy to contract.
E) Unplanned inventories in the economy will grow.
Correct Answer:
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Q2: The table given below states the
Q3: The table given below shows the
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Q8: The equilibrium level of income will rise
Q8: The figure given below shows the aggregate
Q10: The figure given below shows the aggregate
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