Exam 12: Aggregate Expenditure Multiplier

Which components of aggregate expenditure change as a result of real GDP changing?

-The above table gives data for the nation of Mouseville. There are no imports into or exports from Mouseville. The equilibrium level of real GDP is

The ________ the marginal tax rate, the ________ the effect on aggregate expenditure from a change in investment.

The expenditure multiplier measures the change in

As the economy turns the corner into a recession, the level of unplanned inventories ________ and firms ________ production.

In the aggregate expenditure (AE) model, the economy is driven to its equilibrium by changes in

When disposable income increases from $400 billion to $500 billion, consumption expenditure increases from $320 billion to $400 trillion. The MPC is

During 2018, exports increase from $1.0 trillion to $1.5 trillion. If the slope of the aggregate planned expenditure (AE) curve is 0.75, real GDP increases by

The multiplier effect

If the level of real GDP is $14 trillion while aggregate planned expenditure is $15 trillion, then

The slope of the consumption function is

-The above table gives data for the nation of Mouseville. There are no imports into or exports from Mouseville. If real GDP is equal to $400 billion then,

Which of the following is NOT included in aggregate expenditure?

-The above table gives data for the nation of Mouseville. There are no imports into or exports from Mouseville. Aggregate planned expenditure is less than actual expenditure if real GDP is

The expenditure multiplier is typically

-The above table presents data from the nation of Pacifica. Aggregate planned expenditure equals $7.5 trillion when real GDP equals

When the price level ________, equilibrium expenditure ________ and the quantity of real GDP demanded ________.