Exam 12: Aggregate Expenditure Multiplier
Exam 1: Getting Started138 Questions
Exam 2: The Australian and Global Economies84 Questions
Exam 3: The Economic Problem109 Questions
Exam 4: Demand and Supply139 Questions
Exam 5: GDP: a Measure of Total Production and Income67 Questions
Exam 6: Jobs and Unemployment69 Questions
Exam 7: The Cpi and the Cost of Living67 Questions
Exam 8: Economic Growth71 Questions
Exam 9: Finance, Saving and Investment79 Questions
Exam 10: Money, the Price Level and Inflation107 Questions
Exam 11: Aggregate Supply and Aggregate Demand88 Questions
Exam 12: Aggregate Expenditure Multiplier97 Questions
Exam 13: The Short-Run Policy Tradeoff69 Questions
Exam 14: Fiscal Policy76 Questions
Exam 15: Monetary Policy53 Questions
Exam 16: International Trade Policy63 Questions
Exam 17: International Finance74 Questions
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Induced expenditures are defined as that part of
Free
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Correct Answer:
B
When the multiplier is ________, an autonomous decrease in investment of $200 billion decreases equilibrium real GDP by $400 billion. When the multiplier is ________, an autonomous decrease in investment of $200 billion decreases equilibrium real GDP by $800 billion.
Free
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Correct Answer:
A
If aggregate planned expenditure equals GDP, then
Free
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Correct Answer:
E
-The table above gives data for the nation of Mosh. If real GDP is $10 trillion, then

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Jane supports herself at university by working in a bookstore earning $300 a month, which she spends entirely every month. If she gets a salary increase of $100 a month, she spends $90 more dollars on consumption expenditure. Jane's MPC is equal to
(Multiple Choice)
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As a household's disposable income increases, its autonomous expenditures ________ and its induced expenditures ________.
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-The above table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. The equilibrium expenditure is

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A country reports that unplanned inventories increased during 2014. The increase in unplanned inventories leads to
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As a result of an initial increase in investment of $200 billion, real GDP increased by $800 billion. Given this information, the expenditure multiplier equals
(Multiple Choice)
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-The above table has data from the nation of Atlantica. Based on these data, the amount of autonomous consumption is

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When the AE curve shifts upward because the price level falls, the corresponding effect on the aggregate demand curve is
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What is the value of the MPC if $66 out of every $100 increase in disposable income is consumed?
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-The table above gives data for the nation of Mosh. If real GDP is $6 trillion, then

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In an economy in with no income taxes or imports, the multiplier equals
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When GDP = $2.5 trillion, C = $1.0 trillion, I = $0.6 trillion, G = $0.4 trillion, and NX = $0, then
(Multiple Choice)
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The figure above shows two aggregate expenditure lines.
-In the figure above, if the MPC increased, the aggregate expenditure lines would ________ and the multiplier would ________ in value.

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-In the figure above, if real GDP is $20 trillion, aggregate planned expenditure is ________ $20 trillion and unplanned inventory changes are ________.

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-The table above gives data for the nation of Mosh. If we graphed these data, we would see that when GDP equals

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