Exam 25: Aggregate Demand and the Powerful Consumer

Why is it true that domestic product and national income must be equal?

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

Table 8-1 Item Amount (billans) Personal Consumption Expenditures 600 Depreciation 50 Wages 800 Indirect Business Taxes 10 Rental Income 25 Gross Private Domestic Investment 150 Corporate Profits 75 Net Exparts 5 Government Purchases of Goods and Services 200 Government Transfer Payments 50 -According to the data in Table 8-1, the value of NNP is

Figure 8-2 -In Figure 8-2, which of the following moves can be explained by an increase in government transfer payments?

Which of the following is considered to be an investment in economists' point of view?

Which of the following methods could be used to calculate GDP?

To predict the effects of a tax cut on consumption spending, economists must have some estimate of the

Disposable income can be defined as national product

If disposable income increases by $400 billion and consumption increases by $300 billion, the MPC equals

Imports are a leakage in the sense that

National income is

Aggregate demand is the sum of total domestic spending by the private sector.

Lower real interest rates

Governments can affect the level of aggregate demand in a direct way by changing

The total amount spent on final goods and services in the U.S.in 2009 was approximately ten trillion dollars.This total spending is referred to as

Do economists know the value of the MPC for most economies?

The marginal propensity to consume is calculated by dividing the change in consumer spending by the change in disposable income.

Which of the following would be most likely to shift the consumption function downward?

Figure 8-1 -Based on the scatter diagram in Figure 8-1, if real disposable income is $800 billion, the consumption spending would be approximately

Figure 8-2 -In Figure 8-2, which of the following moves can be explained by a decrease in the price level?