Question

sing and government purchases are leakages. 8. In a mixed closed economy: A taxes and government purchases are leakages, while investment and saving are injections. • taxes and investment are injections, while saving and government purchases are leakages. taxes and savings are leakages, while investment and government purchases are injections. 1. government purchases and saving are injections, while investment and taxes are leakages. 9. In a mixed open economy, the equilibrium GDP is determined at that point where: A.S. +M+ I+X+G. B. the 45-degree line and the saving schedule intersect. C.S. + I + X=G+T. D, S +X+G I + T. 10. Suppose the economy's multiplier is 2. Other things equal, a S25 billion decrease in government expenditures on national defense will cause equilibrium GDP to: A. decrease by $150 billion. B. decrease by $25 billion. C. decrease by S50 billion. D. remain unchanged since spending on military goods is unproductive and usually wasteful. 11. If a lump-sum income tax of S25 billion is levied and the MPS is.20, the: A. consumption schedule will shift downward by S25 billion. B. consumption schedule will shift downward by S20 billion, C. saving schedule will shift upward by S5 billion. D. consumption schedule will shift upward by $25 billion. 12. A S1 increase in government spending on goods and services will have a greater impact on the equilibrium GDP than will a SI decline in taxes because: A. government spending increases the money supply and a tax reduction does not. B. government spending is more employment intensive than is either consumption or investment spending C. taxes vary directly with income. D. a portion of a tax cut will be saved. All figures in the table below are in billions of dollars. Exports Imports $50 $60 60 50 GDP $400 450 500 550 600 650 700 Aggregate Expenditures (Closed Economy) $440 480 520 560 600 640 680 60 50 13. Refer to the above data. If this economy were an open economy, the equilibrium GDP will be A. S500 billion B. $600 billion C. $550 billion D. $650 billion

Answer 1

As per HOMEWORKLIB RULES in case of multiple questions only the first question is to be attempted

Kindly ask rest of the questions in a separate post

8.

Correct option: taxes and savings are leakages while investment and government purchases are injections

Reason: In a closed mixed economy, taxes and savings count as leakages while government spending and investment Increase money supply by circulating money in the economy and thus count as injections