Exam 8: Aggregate Demand and The Powerful Consumer

Among the following,which would not be considered part of the investment component of GDP?

In Macronesia,the MPC is approximately .80.If disposable income changes from 1,000 billion pukas to 1,500 billion pukas,then consumption will change by a(n)

Historical data representing consumption and disposable income reveals that

Disposable income is obtained by

The federal government's principal tool in altering consumer spending is changing

When the price level falls,consumers may feel wealthier and the consumption function will shift upward.

U.S.imports rise when income in the United States increases.

Investment goods are counted in GDP because they are

The majority of payments made by the federal government are for

A decrease in disposable income causes a shift in the consumption function.

Which of the following transactions is included in GDP?

In 1963,government economists assumed that the MPC for the United States was approximately 0.90.If taxes were cut by $9 billion,then consumer expenditures would initially be expected to

What is the marginal propensity to consume (MPC)and why is it important in predicting consumer behavior?

The government component (G)of total output includes goods and services purchased by

Aggregate demand is the total demand for the final goods and services produced in an economy.

A $500 government bond is a money-fixed asset.

National income is

A movement from one point to an another point on the same consumption function could be caused due to

A change in the value of consumer's stock market holdings will cause a shift in the consumption function.

Government spending is a leakage out of the circular flow of income and spending.