Exam 12: Aggregate Expenditure Multiplier

arrow
  • Select Tags
search iconSearch Question
flashcardsStudy Flashcards
  • Select Tags

Induced expenditures are defined as that part of

Free
(Multiple Choice)
4.8/5
(45)
Correct Answer:
Verified

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
(Multiple Choice)
4.7/5
(44)
Correct Answer:
Verified

A

If aggregate planned expenditure equals GDP, then

Free
(Multiple Choice)
4.8/5
(30)
Correct Answer:
Verified

E

  -The table above gives data for the nation of Mosh. If real GDP is $10 trillion, then -The table above gives data for the nation of Mosh. If real GDP is $10 trillion, then

(Multiple Choice)
4.7/5
(39)

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)
4.9/5
(41)

As a household's disposable income increases, its autonomous expenditures ________ and its induced expenditures ________.

(Multiple Choice)
4.8/5
(36)

  -The above table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. The equilibrium expenditure is -The above table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. The equilibrium expenditure is

(Multiple Choice)
4.8/5
(41)

A country reports that unplanned inventories increased during 2014. The increase in unplanned inventories leads to

(Multiple Choice)
4.8/5
(33)

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)
4.9/5
(31)

  -The above table has data from the nation of Atlantica. Based on these data, the amount of autonomous consumption is -The above table has data from the nation of Atlantica. Based on these data, the amount of autonomous consumption is

(Multiple Choice)
4.8/5
(34)

When disposable income increases, consumption expenditure

(Multiple Choice)
4.8/5
(37)

An increase in the price level leads to

(Multiple Choice)
4.8/5
(32)

When the AE curve shifts upward because the price level falls, the corresponding effect on the aggregate demand curve is

(Multiple Choice)
4.8/5
(32)

What is the value of the MPC if $66 out of every $100 increase in disposable income is consumed?

(Multiple Choice)
4.9/5
(39)

  -The table above gives data for the nation of Mosh. If real GDP is $6 trillion, then -The table above gives data for the nation of Mosh. If real GDP is $6 trillion, then

(Multiple Choice)
4.8/5
(36)

In an economy in with no income taxes or imports, the multiplier equals

(Multiple Choice)
4.9/5
(38)

When GDP = $2.5 trillion, C = $1.0 trillion, I = $0.6 trillion, G = $0.4 trillion, and NX = $0, then

(Multiple Choice)
4.8/5
(41)

  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. 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.

(Multiple Choice)
4.8/5
(39)

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

(Multiple Choice)
4.8/5
(32)

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

(Multiple Choice)
4.9/5
(34)
Showing 1 - 20 of 97
close modal

Filters

  • Essay(0)
  • Multiple Choice(0)
  • Short Answer(0)
  • True False(0)
  • Matching(0)