1 .		There is no difference between the levels of aggregate output, aggregate income, and real GDP.     True   False
2 .		In a closed economy, the level of exports is high.     True   False
3 .		Keynes argued that changes in income will have no effect on consumption spending.     True   False
4 .		The consumption function can be written as: C = a + bY. Which letter represents the slope?     a is the slope   b is the slope   Y is the slope   C is the slope
5 .		If the marginal propensity to save (MPS) is 1/3, the marginal propensity to consume (MPC) is what?     MPC = 2/3   MPC = 1/3   MPC = 0   MPC = 1
6 .		The difference between actual and planned investment is equal to planned changes in inventory investment.     True   False
7 .		Let aggregate output be represented as Y and planned expenditure as (C + I). If (C + I) is greater than Y, inventory investment is __________ planned.     smaller than   the same amount as   larger than   This cannot be determined from the information given.
8 .		Does S = I in equilibrium?     Yes   No
9 .		The multiplier is less than 1.     True   False
10 .		The multiplier expressed in terms of MPS is 1/MPS.     True   False