Exam 24: Aggregate Demand and the Powerful Consumer

The tax cuts of 2008 and 2009 reduced the disposable income of U.S.consumers.

Economists expect the relationship between consumption and disposable income to be

Employee compensation accounts for about what percentage of national income?

Melissa purchases shares in a government bond mutual fund.Is this included in the aggregate demand component "Investment"?

If households decrease the amount of bank account withdrawals, the consumption function may shift upward.

U.S.imports rise when income in the United States increases.

Which of the following would be counted as investment in the national income accounts?

The net exports adjustments in aggregate demand includes

Residential construction (new houses and apartments) are included in which component of GDP?

What is disposable income? How is it calculated?

If consumers receive an increase in income of $1,000, their spending will increase by a smaller amount.

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

Table 8-1 -Government-produced goods are added to GDP at

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

National income is the sum of

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

Plant and equipment that is "used up" in producing current output is

If disposable income rises by $100 billion, we can expect that consumers will

The largest component of aggregate demand is

If U.S.consumers become more optimistic about their future income and wealth, the consumption function will shift upward.