Figure 13-3 -Refer to Figure 13-3. Suppose the consumption function is given by curve C1. Which of the following will cause an upward shift to curve C2?

A) a decrease in wealth B) an increase in price level C) an increase in interest rates D) an increase in consumer confidence A) a decrease in wealth B) an increase in price level C) an increase in interest rates D) an increase in consumer confidence

A) total income not spent on consumption. B) disposable personal income not spent on consumption. C) found by subtracting consumption from disposable personal income. D) disposable income spent on investment. A) total income not spent on consumption. B) disposable personal income not spent on consumption. C) found by subtracting consumption from disposable personal income. D) disposable income spent on investment.

Exam 13: Consumption and the Aggregate Expenditures Model

Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. What is the level of autonomous aggregate expenditures?

(Multiple Choice)

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Question 181

An increase in the wealth of households, all other things unchanged, will

(Multiple Choice)

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Question 182

Unplanned investment occurs when I. aggregate expenditures exceed real GDP produced. II. aggregate expenditures fall short of real GDP produced. III. when real GDP produced is less than potential real GDP. IV. when real GDP produced is greater than potential real GDP.

(Multiple Choice)

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Question 183

If an economy spends 90% of any increase in real GDP, then an increase in autonomous investment of $1 billion would result ultimately in an increase in equilibrium real GDP of

(Multiple Choice)

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Question 184

Figure 13-3 -Refer to Figure 13-3. Suppose the consumption function is given by curve C₁. Which of the following will cause an upward shift to curve C₂?

(Multiple Choice)

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Question 185

The wealth effect is the tendency for

(Multiple Choice)

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Question 186

Unplanned investment is

(Multiple Choice)

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Question 187

If C = $400 billion + 0.75(Y_d) and if real GDP is $1,000 billion, then for any positive tax Jrate, C =$1,150 billion.

(True/False)

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Question 188

Personal saving is disposable personal income not spent on consumption.

(True/False)

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Question 189

The consumption function shows the negative relationship between consumption and Jdisposable personal income.

(True/False)

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Question 190

Let AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment, JG = Government Purchases. Consider a simple aggregate expenditures model, where JAE = C + I_P + G and all components of aggregate expenditures except consumption are autonomous. All other things unchanged, a decrease in the price level

(Multiple Choice)

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Question 191

Planned investment is

(Multiple Choice)

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Question 192

Personal saving is

(Multiple Choice)

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Question 193

Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. If real GDP produced is $4,000,

(Multiple Choice)

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Question 194

Figure 13-5 -Refer to Figure 13-5. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI_P = Planned Investment. Consider a simple economy where AE = C + I_P, I_P is autonomous Jand the consumption function is given by C = $1,000 billion + 0.75Y. What is the value of equilibrium real GDP (Y*)?

(Multiple Choice)

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Question 195

In the aggregate expenditures model, in equilibrium,

(Multiple Choice)

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Question 196

Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. If the consumption function is JC = $500 + 0.8Y, planned investment = $200, government purchases = $300, Jnet exports = $100, and real GDP = $1,000, what is the amount of induced expenditures?

(Multiple Choice)

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Question 197

Expenditures that do not vary with the level of real GDP are called

(Multiple Choice)

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Question 198

If consumption is given by C = $10 billion + 0.5Y, and autonomous planned investment, Jgovernment purchases, and net exports amount to $5 billion, then aggregate expenditures are J$20 billion if Y = $10 billion.

(True/False)

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Question 199

Personal saving is real GDP not spent on consumption.

(True/False)

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Question 200

Showing 181 - 200 of 219

Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. What is the level of autonomous aggregate expenditures?

An increase in the wealth of households, all other things unchanged, will

Unplanned investment occurs when I. aggregate expenditures exceed real GDP produced. II. aggregate expenditures fall short of real GDP produced. III. when real GDP produced is less than potential real GDP. IV. when real GDP produced is greater than potential real GDP.

If an economy spends 90% of any increase in real GDP, then an increase in autonomous investment of $1 billion would result ultimately in an increase in equilibrium real GDP of

Figure 13-3 -Refer to Figure 13-3. Suppose the consumption function is given by curve C₁. Which of the following will cause an upward shift to curve C₂?

The wealth effect is the tendency for

Unplanned investment is

If C = $400 billion + 0.75(Y_d) and if real GDP is $1,000 billion, then for any positive tax Jrate, C =$1,150 billion.

Personal saving is disposable personal income not spent on consumption.

The consumption function shows the negative relationship between consumption and Jdisposable personal income.

Planned investment is

Personal saving is

Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. If real GDP produced is $4,000,

In the aggregate expenditures model, in equilibrium,

Expenditures that do not vary with the level of real GDP are called

If consumption is given by C = $10 billion + 0.5Y, and autonomous planned investment, Jgovernment purchases, and net exports amount to $5 billion, then aggregate expenditures are J$20 billion if Y = $10 billion.

Personal saving is real GDP not spent on consumption.

Economics: the Study of Choice

Demand and Supply

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Economic Development

Socialist Economies in Transition

Filters

Exam 13: Consumption and the Aggregate Expenditures Model

Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JIP = Planned Investment, G = Government Purchases. Further, IP and G are autonomous. What is the level of autonomous aggregate expenditures?

An increase in the wealth of households, all other things unchanged, will

Unplanned investment occurs when I. aggregate expenditures exceed real GDP produced. II. aggregate expenditures fall short of real GDP produced. III. when real GDP produced is less than potential real GDP. IV. when real GDP produced is greater than potential real GDP.

If an economy spends 90% of any increase in real GDP, then an increase in autonomous investment of $1 billion would result ultimately in an increase in equilibrium real GDP of

Figure 13-3 -Refer to Figure 13-3. Suppose the consumption function is given by curve C1. Which of the following will cause an upward shift to curve C2?

The wealth effect is the tendency for

Unplanned investment is

If C = $400 billion + 0.75(Yd) and if real GDP is $1,000 billion, then for any positive tax Jrate, C =$1,150 billion.

Personal saving is disposable personal income not spent on consumption.

The consumption function shows the negative relationship between consumption and Jdisposable personal income.

Planned investment is

Personal saving is

Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JIP = Planned Investment, G = Government Purchases. Further, IP and G are autonomous. If real GDP produced is $4,000,

In the aggregate expenditures model, in equilibrium,

Expenditures that do not vary with the level of real GDP are called

If consumption is given by C = $10 billion + 0.5Y, and autonomous planned investment, Jgovernment purchases, and net exports amount to $5 billion, then aggregate expenditures are J$20 billion if Y = $10 billion.

Personal saving is real GDP not spent on consumption.

Economics: the Study of Choice

Demand and Supply

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Economic Development

Socialist Economies in Transition

Filters

Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. What is the level of autonomous aggregate expenditures?

Figure 13-3 -Refer to Figure 13-3. Suppose the consumption function is given by curve C₁. Which of the following will cause an upward shift to curve C₂?

If C = $400 billion + 0.75(Y_d) and if real GDP is $1,000 billion, then for any positive tax Jrate, C =$1,150 billion.

Figure 13-6 -Refer to Figure 13-6. Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, JI_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. If real GDP produced is $4,000,