Exam 13: Consumption and the Aggregate Expenditures Model

Use the following to answer questions Exhibit: Consumption and Disposable Personal Income -(Exhibit: Consumption and Disposable Personal Income) When disposable personal income is $1,200 billion, consumption is

(Multiple Choice)

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Question 41

In general, we expect that a reduction in the income tax rate will make the aggregate expenditures curve

(Multiple Choice)

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Question 42

Use the following to answer questions Exhibit: Consumption and Real GDP -According to the current income hypothesis,

(Multiple Choice)

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Question 43

The income households receive less the personal income taxes they pay is

(Multiple Choice)

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Question 44

The notion that a change in autonomous aggregate expenditures produces a larger change in equilibrium real GDP in the aggregate expenditures model is called the

(Multiple Choice)

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Question 45

Suppose when disposable personal income increases from $10,000 to $15,000, consumption increases from $9,000 to $13,000.What is the marginal propensity to save?

(Multiple Choice)

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Question 46

Use the following to answer questions Exhibit: Aggregate Expenditures and Real GDP 2 -(Exhibit: Aggregate Expenditures and Real GDP 2) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment.Consider a simple economy where AE = C + I_P, I_P is autonomous and the consumption function is given by C = $1,000 billion + 0.75Y.What is the value of equilibrium real GDP (Y*) ?

(Multiple Choice)

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Question 47

In the simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption, if the slope of the aggregate expenditures curve increases, the multiplier

(Multiple Choice)

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Question 48

During an economic downturn, households respond to a decline in income by

(Multiple Choice)

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Question 49

Suppose when disposable personal income increases from $10,000 to $15,000, consumption increases from $9,000 to $13,000.What is the marginal propensity to consume?

(Multiple Choice)

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Question 50

Expenditures that vary with the level of real GDP are called

(Multiple Choice)

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Question 51

Use the following to answer questions Exhibit: Aggregate Expenditures and Real GDP 2 -(Exhibit: Aggregate Expenditures and Real GDP 2) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment.Consider a simple economy where AE = C + I_P, I_P is autonomous and the consumption function is given by C = $1,000 billion + 0.75Y.What is the value of the multiplier?

(Multiple Choice)

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Question 52

Use the following to answer questions Exhibit: Aggregate Expenditures and Real GDP 2 -(Exhibit: Aggregate Expenditures and Real GDP 2) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment and Y* = equilibrium real GDP.Suppose AE = C + I_P, I_P is autonomous and the consumption function is C = $1,000 billion + 0.75Y.If firms produced a real GDP less than the Y*,

(Multiple Choice)

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Question 53

Let AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment, G = Government Purchases.Consider a simple aggregate expenditures model, where AE = C + I_P + G and all components of aggregate expenditures except consumption are autonomous.In this model, the slope of the AE curve is the

(Multiple Choice)

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Question 54

Let Y = real GDP and Y_d = disposable income.Suppose initially, Y = Y_d and the marginal propensity to consume (MPC) Is 0.9.All components of aggregate expenditures except consumption are autonomous.Now suppose the government imposes an income tax rate of 20% on real GDP.What is the marginal propensity to consume following the imposition of an income tax?

(Multiple Choice)

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Question 55

Use the following to answer questions Exhibit: Consumption and Real GDP -(Exhibit: Consumption and Real GDP) If real GDP were $12 trillion, consumption equals

(Multiple Choice)

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Question 56

Use the following to answer questions Exhibit: Aggregate Expenditures (AE) in a Simplified Economy -(Exhibit: Aggregate Expenditures (AE) In a Simplified Economy) Consider a simple economy that is made up of only two sectors, households and firms, and that all investment is autonomous.Further, disposable personal income = real GDP and the economy is currently producing at its level of potential real GDP.What is the marginal propensity to consume in this economy?

(Multiple Choice)

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Question 57

The ratio of the change in equilibrium real GDP to the change in autonomous aggregate expenditures that produced it is the:

(Multiple Choice)

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Question 58

An increase in autonomous aggregate expenditures

(Multiple Choice)

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Question 59

Use the following to answer questions Exhibit: Income and Consumption -Suppose the consumption function is C = $500 + 0.8Y.If Y = $1,000, then autonomous consumption is

(Multiple Choice)

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Question 60

Showing 41 - 60 of 214

Use the following to answer questions Exhibit: Consumption and Disposable Personal Income -(Exhibit: Consumption and Disposable Personal Income) When disposable personal income is $1,200 billion, consumption is

In general, we expect that a reduction in the income tax rate will make the aggregate expenditures curve

Use the following to answer questions Exhibit: Consumption and Real GDP -According to the current income hypothesis,

The income households receive less the personal income taxes they pay is

The notion that a change in autonomous aggregate expenditures produces a larger change in equilibrium real GDP in the aggregate expenditures model is called the

Suppose when disposable personal income increases from $10,000 to $15,000, consumption increases from $9,000 to $13,000.What is the marginal propensity to save?

In the simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption, if the slope of the aggregate expenditures curve increases, the multiplier

During an economic downturn, households respond to a decline in income by

Suppose when disposable personal income increases from $10,000 to $15,000, consumption increases from $9,000 to $13,000.What is the marginal propensity to consume?

Expenditures that vary with the level of real GDP are called

Let AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment, G = Government Purchases.Consider a simple aggregate expenditures model, where AE = C + I_P + G and all components of aggregate expenditures except consumption are autonomous.In this model, the slope of the AE curve is the

Use the following to answer questions Exhibit: Consumption and Real GDP -(Exhibit: Consumption and Real GDP) If real GDP were $12 trillion, consumption equals

The ratio of the change in equilibrium real GDP to the change in autonomous aggregate expenditures that produced it is the:

An increase in autonomous aggregate expenditures

Use the following to answer questions Exhibit: Income and Consumption -Suppose the consumption function is C = $500 + 0.8Y.If Y = $1,000, then autonomous consumption is

Economics: the Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Filters

Exam 13: Consumption and the Aggregate Expenditures Model

Use the following to answer questions Exhibit: Consumption and Disposable Personal Income -(Exhibit: Consumption and Disposable Personal Income) When disposable personal income is $1,200 billion, consumption is

In general, we expect that a reduction in the income tax rate will make the aggregate expenditures curve

Use the following to answer questions Exhibit: Consumption and Real GDP -According to the current income hypothesis,

The income households receive less the personal income taxes they pay is

The notion that a change in autonomous aggregate expenditures produces a larger change in equilibrium real GDP in the aggregate expenditures model is called the

Suppose when disposable personal income increases from $10,000 to $15,000, consumption increases from $9,000 to $13,000.What is the marginal propensity to save?

In the simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption, if the slope of the aggregate expenditures curve increases, the multiplier

During an economic downturn, households respond to a decline in income by

Suppose when disposable personal income increases from $10,000 to $15,000, consumption increases from $9,000 to $13,000.What is the marginal propensity to consume?

Expenditures that vary with the level of real GDP are called

Let AE = Aggregate Expenditures, C = Consumption, IP = Planned Investment, G = Government Purchases.Consider a simple aggregate expenditures model, where AE = C + IP + G and all components of aggregate expenditures except consumption are autonomous.In this model, the slope of the AE curve is the

Use the following to answer questions Exhibit: Consumption and Real GDP -(Exhibit: Consumption and Real GDP) If real GDP were $12 trillion, consumption equals

The ratio of the change in equilibrium real GDP to the change in autonomous aggregate expenditures that produced it is the:

An increase in autonomous aggregate expenditures

Use the following to answer questions Exhibit: Income and Consumption -Suppose the consumption function is C = $500 + 0.8Y.If Y = $1,000, then autonomous consumption is

Economics: the Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Filters

Let AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment, G = Government Purchases.Consider a simple aggregate expenditures model, where AE = C + I_P + G and all components of aggregate expenditures except consumption are autonomous.In this model, the slope of the AE curve is the