1. The multiplier effect represents permanent changes in investments or consumptions that are multiplied to get a change in equilibrium.

True

False

2. The U.S. trade deficit is where the value of U.S. imports is less than the value of U.S. exports.

True

False

3. Automatic stabilizers are discretionary fiscal policies.

True

False

4. The amount of real planned consumption which does not depend at all on actual real disposable income is called your adjusted disposable income.

True

False

5. The government providing cheese to students at lunch can produce a direct expenditure offset.

True

False

6. The government providing cheese to students at lunch can produce a direct expenditure offset.

True

False

7. The demand curve is found by adding together the individual quantities demanded by all the buyer in a market.

True

False

8. If aggregate demand increases for a given level of long-run aggregate supply, the price level must increase.

True

False

9. In the Keynesian Model, the equilibrium level of real GDP per year is completely demand determined.

True

False