Short Run Equilibrium

Which of the following have no impact on output in the short run

• Price of Raw Materials

• Employment

• Technology

• Capital Employed

What is the minimum and maximum value of the investment multiplier?

(separate the two answers by a comma or a semicolon)

• 0, 1

• -1, 1

• 1, infinity

• 0, infinity

When the investment multiplier is 1, the value of MPC is _____.

Write True or False :

Equilibrium GDP is struck when -

Actual Saving = Actual Investment

[SELECT ALL THAT APPLY]

Which are the approaches to equilibrium output

• AS = AD

• S = I

• Ex Post Saving = Ex Post Investment

• Y = AD

AS is

• Perfectly Elastic

• Perfectly Inelastic

• Elastic

• Inelastic

Investment multiplier =

• $\frac{\Delta I}{\Delta Y}$

• $\frac{\Delta Y}{\Delta I}$

• $\frac{\Delta C}{\Delta I}$

• $\frac{Y}{I}$

MPC and multiplier have a ________ relationship

• Direct

• Indirect

• Constant

• None of the above

If AD<AS, then the remedy would be -

• Firms would decrease employment

• Underemployed resources would be properly utilized

• Firms will spend more on investment

• Government would increase taxes

If MPS = 0.1, calculate the value of investment multiplier