The inflation rate reported in the news is usually calculated from the GDP deflator rather than the consumer price index

If consumption expenditures are $200 billion, total investment is $50 billion, government purchases are $40 billion, exports are $45 billion, imports are $40 billion, aggregate expenditures must be:

a. $275 billion. b. $295 billion. c. $320 billion. d. $395 billion.

Suppose the marginal propensity to consume is 0.63, the marginal propensity to import equals 0.08, and personal income taxes amount to 9 percent of GDP. The spending multiplier for this economy is equal to _____

a. 0.54 b. 0.80 c. 1.25 d. 1.41 e. 1.85