Exam 9: Aggregate Demand Appendix: the Keynesian Cross

One In the News article titled "News Release: Personal Income and Outlays" says,"Personal consumption expenditure (PCE)increased 95 billion,or 1.0 percent." An increase in spending is likely the result of

Most economists today recognize that a short-run macro failure is possible.

Which of the following is not considered to be an important determinant of investment?

One In the News article titled "Consumer Confidence Index at All-Time Low" indicates that consumer confidence decreased.As a result,which of the following is most likely to happen?

Use the following table to answer the questions : Table9.2: -Complete Table 9.2.(Data are expressed in billions of dollars. ) If the full-employment level of income (Y_F)in Table 9.2 is $700 billion,

Dissaving occurs whenever

Which of the following is not a determinant of autonomous consumption?

Use the following figure to answer the questions : Figure9.7 -If the full-employment level of income in Figure 9.7 is $300 billion,there is

How can autonomous consumption be greater than zero when income is zero?

Which of the following is true when an economy produces at full employment,but consumers,government,businesses,and the foreign sector do not buy all the output?

What is investment spending,and what are the factors that impact investment demand? Explain.

If we assume that government expenditure,investment,and net exports are not affected by income,the slope of the consumption function equals

Suppose the consumption function is C = $100 + 0.85Y_D.If disposable income is $400,saving is

Use the following figure to answer the questions : Figure9.6: - In Figure 9.6,if full employment occurs at Q_C, then aggregate demand is

Income transfers,such as unemployment insurance,welfare benefits,and food stamps,

Use the following table to answer the questions : Table9.1: -What is the rate of saving when income equals $1,000 billion in Table 9.1?

An increase in the income-dependent portion of the consumption function would correspond to a

Use the following figure to answer the questions : Figure9.8 -In response to changing inventories in Figure 9.8,if the economy produces at full employment of $400 billion,firms will attempt to

The four components of aggregate demand include all of the following except

Use the following figure to answer the questions : Figure9.8 - In Figure 9.8,if full-employment income is produced at $400 billion,which of the following can prevent a recession?