Exam 23: Aggregate Expenditure and Equilibrium Output

Refer to the information provided in Table 23.10 below to answer the question(s) that follow. Table 23.10 -Refer to Table 23.10. The MPC in this economy is

If the saving function is of the form [S = -15 + 0.4Y], consumption at an income level of 200 is

Refer to the information provided in Figure 23.10 below to answer the question(s) that follow. Figure 23.10 -Refer to Figure 23.10. Unplanned inventories decrease and output increases when aggregate output is

If consumption is $30,000 when income is $35,000, and consumption increases to $36,000 when income increases to $43,000, the MPC is

At equilibrium, C + S = C + I.

Refer to the information provided in Figure 23.2 below to answer the question(s) that follow. Figure 23.2 -Refer to Figure 23.2. Suppose Jerry's MPC decreases. At income Y₁, Jerry's

Refer to the information provided in Table 23.8 below to answer the question(s) that follow. Table 23.8 -Refer to Table 23.8. The MPC in this economy is

Assume there is no government or foreign sector. If the MPS is 0.05, the multiplier is

If Corinne's income is reduced to zero after she loses her job, her ________ will be greater than zero and her ________ will be less than zero.

If the MPS is 0.3, the MPC is

Refer to the information provided in Figure 23.3 below to answer the question(s) that follow. Figure 23.3 -Refer to Figure 23.3. The equation for the aggregate consumption function is

Refer to the information provided in Figure 23.10 below to answer the question(s) that follow. Figure 23.10 -Refer to Figure 23.10. At aggregate output levels above $1,000 million, there are

Using the saving/investment approach to equilibrium, the equilibrium condition can be written as

If planned investment increases, equilibrium will be restored only when saving has increased by exactly the amount of the initial increase in planned investment, assuming there is no government or foreign sector.

If consumption is $60,000 when income is $80,000, and consumption increases to $68,000 when income increases to $90,000, the MPC is

Refer to the information provided in Figure 23.4 below to answer the question(s) that follow. Figure 23.4 -Refer to Figure 23.4. Which consumption function implies the smallest MPS?

Refer to the information provided in Figure 23.1 below to answer the question(s) that follow. Figure 23.1 -Refer to Figure 23.1. The MPS for this household is ________ and the MPC is ________.

An expected permanent tax increase is likely to increase current spending.

Refer to the information provided in Table 23.8 below to answer the question(s) that follow. Table 23.8 -Refer to Table 23.8. At an aggregate output level of $7,000 million, the unplanned inventory change is

Refer to the information provided in Figure 23.5 below to answer the question(s) that follow. Figure 23.5 -Refer to Figure 23.5. If aggregate income is $900 billion, aggregate consumption