Exam 13: Consumption and the Aggregate Expenditures Model

Use the following to answer questions . Exhibit: Aggregate Expenditures Curve Figure 13-6 -(Exhibit: Aggregate Expenditures Curve) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. What is the marginal propensity to consume?

(Multiple Choice)

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Question 41

In the aggregate expenditures model, if real GDP equals $700 billion and aggregate expenditures equal $400 billion,

(Multiple Choice)

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Question 42

Use the following to answer questions . Exhibit: Aggregate Expenditures and Real GDP 1 -(Exhibit: Aggregate Expenditures and Real GDP 1) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment. Suppose AE = C + I_P, and I_P is autonomous. Which of the following statements is true?

(Multiple Choice)

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Question 43

The sum of planned levels of consumption, investment, government purchases, and net exports, at a given price level, is called

(Multiple Choice)

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Question 44

In general, we expect that a reduction in the income tax rate will make the aggregate expenditures curve

(Multiple Choice)

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Question 45

The marginal propensity to save is given by

(Multiple Choice)

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Question 46

The average annual income that people expect to receive for the remainder of their lives is called

(Multiple Choice)

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Question 47

Use the following to answer questions . Exhibit: Real GDP and the Multiplier -(Exhibit: Real GDP and the Multiplier) Holding everything else constant, if net exports fall by $400 billion, equilibrium real GDP will decrease

(Multiple Choice)

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Question 48

A decrease in the price level, all other things unchanged, shifts the aggregate expenditures curve upwards.

(True/False)

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Question 49

Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. Which of the following events causes the aggregate expenditures curve to shift downwards?

(Multiple Choice)

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Question 50

Using the aggregate expenditures model, which of the following occurs if aggregate expenditures exceed real GDP? I. The economy will expand causing an increase in employment. II. The economy will experience an inflationary gap. III. The price level will rise. IV. Actual investment will be less than planned investment.

(Multiple Choice)

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Question 51

Which of the following statements is false?

(Multiple Choice)

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Question 52

Use the following to answer questions . Exhibit: Aggregate Expenditures Curve Figure 13-6 -(Exhibit: Aggregate Expenditures Curve) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment, G = Government Purchases. Further, I_P and G are autonomous. If real GDP produced is $4,000, what is the amount of aggregate expenditures?

(Multiple Choice)

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Question 53

Use the following to answer questions . Exhibit: Income and Consumption -(Exhibit: Income and Consumption) When disposable personal income is $400, what is the amount of personal saving?

(Multiple Choice)

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Question 54

Let AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment, G = Government Purchases. Consider a simple aggregate expenditures model, where AE = 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 55

Use the following to answer questions . Exhibit: Consumption Functions Figure 13-3 -(Exhibit: Consumption Functions) 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 56

Suppose the consumption function is C = $500 + 0.8Y. If Y = $1,000, what is the amount of consumption?

(Multiple Choice)

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Question 57

The marginal propensity to consume is the

(Multiple Choice)

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Question 58

Expenditures that vary with the level of real GDP are called

(Multiple Choice)

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Question 59

If consumption increases by $75 billion when disposable personal income increases by $100, the marginal propensity to consume is 0.75.

(True/False)

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Question 60

Showing 41 - 60 of 219

In the aggregate expenditures model, if real GDP equals $700 billion and aggregate expenditures equal $400 billion,

The sum of planned levels of consumption, investment, government purchases, and net exports, at a given price level, is called

In general, we expect that a reduction in the income tax rate will make the aggregate expenditures curve

The marginal propensity to save is given by

The average annual income that people expect to receive for the remainder of their lives is called

Use the following to answer questions . Exhibit: Real GDP and the Multiplier -(Exhibit: Real GDP and the Multiplier) Holding everything else constant, if net exports fall by $400 billion, equilibrium real GDP will decrease

A decrease in the price level, all other things unchanged, shifts the aggregate expenditures curve upwards.

Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. Which of the following events causes the aggregate expenditures curve to shift downwards?

Which of the following statements is false?

Use the following to answer questions . Exhibit: Income and Consumption -(Exhibit: Income and Consumption) When disposable personal income is $400, what is the amount of personal saving?

Use the following to answer questions . Exhibit: Consumption Functions Figure 13-3 -(Exhibit: Consumption Functions) Suppose the consumption function is given by curve C₁. Which of the following will cause an upward shift to curve C₂?

Suppose the consumption function is C = $500 + 0.8Y. If Y = $1,000, what is the amount of consumption?

The marginal propensity to consume is the

Expenditures that vary with the level of real GDP are called

If consumption increases by $75 billion when disposable personal income increases by $100, the marginal propensity to consume is 0.75.

Economics: the Study of Choice

Demand and Supply

Applications of Supply and Demand

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

Filters

Exam 13: Consumption and the Aggregate Expenditures Model

In the aggregate expenditures model, if real GDP equals $700 billion and aggregate expenditures equal $400 billion,

The sum of planned levels of consumption, investment, government purchases, and net exports, at a given price level, is called

In general, we expect that a reduction in the income tax rate will make the aggregate expenditures curve

The marginal propensity to save is given by

The average annual income that people expect to receive for the remainder of their lives is called

Use the following to answer questions . Exhibit: Real GDP and the Multiplier -(Exhibit: Real GDP and the Multiplier) Holding everything else constant, if net exports fall by $400 billion, equilibrium real GDP will decrease

A decrease in the price level, all other things unchanged, shifts the aggregate expenditures curve upwards.

Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. Which of the following events causes the aggregate expenditures curve to shift downwards?

Which of the following statements is false?

Use the following to answer questions . Exhibit: Income and Consumption -(Exhibit: Income and Consumption) When disposable personal income is $400, what is the amount of personal saving?

Use the following to answer questions . Exhibit: Consumption Functions Figure 13-3 -(Exhibit: Consumption Functions) Suppose the consumption function is given by curve C1. Which of the following will cause an upward shift to curve C2?

Suppose the consumption function is C = $500 + 0.8Y. If Y = $1,000, what is the amount of consumption?

The marginal propensity to consume is the

Expenditures that vary with the level of real GDP are called

If consumption increases by $75 billion when disposable personal income increases by $100, the marginal propensity to consume is 0.75.

Economics: the Study of Choice

Demand and Supply

Applications of Supply and Demand

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

Filters

Use the following to answer questions . Exhibit: Consumption Functions Figure 13-3 -(Exhibit: Consumption Functions) Suppose the consumption function is given by curve C₁. Which of the following will cause an upward shift to curve C₂?