Refer to the information provided in Table 8.5 below to answer the questions that follow.
Table 8.5

-Refer to Table 8.5.Which of the following statements is FALSE?
A)At an output level $4,000 million,there is a $400 million unplanned inventory decrease.
B)If aggregate output equals $4,000 million,then aggregate saving equals $1000 million.
C)The MPC for this economy is 0.8.
D)At an output level of $3,000 million,there is a $600 million unplanned inventory decrease.

Question

Refer to the information provided in Table 8.5 below to answer the questions that follow.
Table 8.5
 
-Refer to Table 8.5.Which of the following statements is FALSE?
A)At an output level $4,000 million,there is a $400 million unplanned inventory decrease. 
B)If aggregate output equals $4,000 million,then aggregate saving equals $1000 million. 
C)The MPC for this economy is 0.8. 
D)At an output level of $3,000 million,there is a $600 million unplanned inventory decrease.

Quizplus · Accepted Answer

According to Table 8.5, at an output level of $4,000 million, aggregate saving equals $800 million (not $1,000 million). Therefore, statement B is false.

Refer to the Information Provided in Table 8