Exam 11: B: The Aggregate Expenditures Model

Refer to the above diagram for a private closed economy.At the equilibrium level of GDP saving is:

In a private closed economy, the equilibrium GDP is achieved where GDP equals:

The table shows a private, open economy.All figures are in billions of dollars. Refer to the above table.If net exports increased by $10 billion at each level of GDP, the equilibrium real GDP would be:

Refer to the above diagram for a private closed economy.In this economy, aggregate expenditures:

Refer to the diagram below for a private closed economy.At income level D:

Refer to the above diagrams.Other things equal, an interest rate decrease will:

During the recession of 2008-2009, both after-tax consumption and government expenditures declined.

Planned investment equals saving:

A recessionary expenditure gap exists if:

An exchange rate:

Suppose the economy is operating at its full-employment-noninflationary GDP and the MPC is 0.75.The federal government now finds that it must increase spending on military goods by $21 billion in response to a deterioration in the international political situation.To sustain full-employment-noninflationary GDP government must:

Refer to the above diagrams.Curve A:

In the economy in the above diagram, international trade:

Refer to the data below.If gross investment is $10 at all levels of GDP, the equilibrium GDP will be: The following schedule contains data for a private closed economy.All figures are in billions.

Assume in a private economy that the equilibrium level of income is $380 and the MPS is 0.25.Now suppose government collects taxes of $50 and spends the entire amount.As a result:

Which of the following would increase GDP by the greatest amount?

Cyclical unemployment in Canada is essentially the consequence of:

The table shows the consumption schedule for a hypothetical economy.All figures are in billions of dollars. Refer to the above table.If taxes were zero, government purchases of goods and services $10, planned investment $6, and net exports zero, equilibrium real GDP would be:

Which of the following is a correct statement of the impacts of a lump-sum tax?

Suppose the economy's multiplier is 2.Other things equal, a $25 billion decrease in government expenditures on national defence will cause equilibrium GDP to: