Exam 25: Aggregate Demand and the Powerful Consumer

If the price level increases, we would expect consumers to

Which of the following would cause an upward shift in the consumption function?

Which of the following is the best example of an intermediate good?

The circular flow diagram is best described as a(n)

In the circular flow model, which of the following is considered a leakage?

The equation representing the final demand approach to calculating GDP is

When computing gross domestic product, government services are valued at the

Define the following terms and explain their importance in the study of macroeconomics: a.consumer expenditures b.investment spending c.national income d.transfer payments

Government transfer payments are income earned by individuals who work for the federal government.

The value of intermediate goods is not included in the calculation of GDP to avoid the problem of

Based on the relative size of factor payments, the most important resource in the U.S.economy is

If an economist wants to make a prediction about the effects of a change in disposable income on the change in consumption spending based on historical data, she must assume that

In the circular flow model, which of the following is an injection?

Whirlpool Corporation buys steel in sheets to manufacture refrigerators.Whirlpool also buys a new factory and a metal press to mold the steel.Which purchases are included in GDP?

In the national income accounts, the symbol G represents the

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)

If the stock market falls by 25 percent next year and remains down, what is most likely to happen to the consumption function?

The purchase of stocks and bonds is included in which component of GDP?

We should expect the consumption function to shift downward if

Which of the following is not part of the investment component of GDP?