Question 1

When aggregate expenditure is less than GDP, which of the following is true?

Accepted Answer

A)  There was an unplanned increase in inventories. 
B)  Firms spent more on capital goods than they anticipated. 
C)  Households bought more new homes than they anticipated. 
D)  All of the above must be true when aggregate expenditure is less than GDP. 
A)  There was an unplanned increase in inventories. 
B)  Firms spent more on capital goods than they anticipated. 
C)  Households bought more new homes than they anticipated. 
D)  All of the above must be true when aggregate expenditure is less than GDP.

Question 2

An increase in the price level in the United States will shift the aggregate expenditure line upward.

Accepted Answer

A) True 
 B)False

Question 3

U.S. net export spending rises when

Accepted Answer

A)  the price level in the United States rises relative to the price level in other countries. 
B)  the growth rate of U.S. GDP is slower than the growth rate of GDP in other countries. 
C)  the value of the U.S. dollar increases relative to other currencies. 
D)  the inflation rate is higher in the United States relative to other countries. 
A)  the price level in the United States rises relative to the price level in other countries. 
B)  the growth rate of U.S. GDP is slower than the growth rate of GDP in other countries. 
C)  the value of the U.S. dollar increases relative to other currencies. 
D)  the inflation rate is higher in the United States relative to other countries.

Question 4

Firms in a small economy anticipated that inventories would grow over the past year by $500,000. Over that year, inventories actually grew by only $400,000. This implies that

Accepted Answer

A)  aggregate expenditure that year was greater than GDP that year. 
B)  there was an unplanned increase in inventories that year. 
C)  there was a planned increase in inventories that year. 
D)  aggregate expenditure that year was equal to GDP that year. 
A)  aggregate expenditure that year was greater than GDP that year. 
B)  there was an unplanned increase in inventories that year. 
C)  there was a planned increase in inventories that year. 
D)  aggregate expenditure that year was equal to GDP that year.

Question 5

Equilibrium GDP is equal to

Accepted Answer

A)  autonomous expenditure times the marginal propensity to consume. 
B)  autonomous expenditure times the marginal propensity to save. 
C)  autonomous expenditure times the multiplier. 
D)  autonomous expenditure. 
A)  autonomous expenditure times the marginal propensity to consume. 
B)  autonomous expenditure times the marginal propensity to save. 
C)  autonomous expenditure times the multiplier. 
D)  autonomous expenditure.

When aggregate expenditure is less than GDP, which of the following is true?

An increase in the price level in the United States will shift the aggregate expenditure line upward.

U.S. net export spending rises when

Firms in a small economy anticipated that inventories would grow over the past year by $500,000. Over that year, inventories actually grew by only $400,000. This implies that

Equilibrium GDP is equal to

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

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Exam 23: Aggregate Expenditure and Output in the Short Run

When aggregate expenditure is less than GDP, which of the following is true?

An increase in the price level in the United States will shift the aggregate expenditure line upward.

U.S. net export spending rises when

Firms in a small economy anticipated that inventories would grow over the past year by $500,000. Over that year, inventories actually grew by only $400,000. This implies that

Equilibrium GDP is equal to

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters