Refer to the information provided in Table 8.8 below to answer the questions that follow.
Table 8.8
-Refer to Table 8.8. 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 8.8 below to answer the questions that follow.
Table 8.8 
-Refer to Table 8.8. 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 8.8, at an output level of $4,000 million, aggregate saving is $1,400 million ($600 million from planned saving and $800 million from unplanned saving). Therefore, statement B is false as aggregate saving does not equal $1,000 million at this output level.

Refer to the Information Provided in Table 8