Exam 11: B: The Aggregate Expenditures Model

Refer to the diagram below for a private closed economy.Saving and planned investment are equal:

Refer to the information below.The multiplier in this economy is:

If government increases its tax revenues by $15 billion and the MPC is 2/3, then we can expect the equilibrium GDP to:

In an open economy, the multiplier is 1 divided by:

During the recession of 2008 - 2009:

The following information is for a closed economy: Refer to the above information.If both government spending and taxes are zero, the equilibrium level of GDP:

Which event would most likely decrease an economy's exports?

The following information is for a private closed economy, where I_g is gross investment, S is saving, and Y is gross domestic product (GDP).I_g = 80 S = -80 + 0.4Y Refer to the above information.In equilibrium, consumption will be:

If the MPC in an economy is .75, a $1 billion increase in taxes will reduce the GDP by:

Assuming the MPC is .75, an equal $10 billion increases in government spending and tax collections will:

If the dollar appreciates relative to foreign currencies, we would expect:

If a lump-sum tax of $40 billion is imposed and the MPC is 0.6, the saving schedule will:

In a private closed economy, where aggregate expenditures exceed domestic output:

In the aggregate expenditures model, a reduction in taxes may:

If unplanned investment in business inventories occurs, we can expect:

C = 40 + .8Y _ I_g = I_g = 40 _ X = X = 20 _ M = M = 30 Refer to the above information.In equilibrium, the level of consumption is:

In which of the following situations for a private closed economy will the level of GDP expand?

The equilibrium level of GDP for the above private open economy is:

Refer to the above table.If an additional lump-sum tax of $20 were imposed, we would expect:

If a nation imposes tariffs and quotas on foreign products, the immediate effect, if no retaliation is immediately imposed by other countries will be to: