Exam 9: Aggregate Demand

A technological change that positively affects business expectations will:

An increase in real disposable income will:

Movement along the aggregate expenditure line is caused by a change in the level of income.

The smaller the marginal propensity to save, other things constant, _____.

In an economy without a government and without international transactions, aggregate expenditure at each level of income is equal to:

An increase in the price level in an economy will _____.

If the level of autonomous spending in an economy increases at a given price level, _____.

The table given below shows the values of different components of aggregate expenditure of an economy. The equilibrium level of gross domestic product (GDP) is _____. 

The higher the opportunity cost of borrowing, the higher the amount of investment, other things constant.

The table given below shows the values of different components of aggregate expenditure of an economy. The marginal propensity to save (MPS) equals _____. 

Expectations that the price level will decrease in the future will _____.

If the simple spending multiplier is 10, the marginal propensity to save (MPS) is:

Which of the following is true of government purchases?

Which of the following will not shift the consumption function?

At the equilibrium level of real gross domestic product (GDP), unplanned inventory adjustment equals _____.

The marginal propensity to consume is:

Purchases of existing commodities, such as gold and precious gems, are considered investment spending by economists.

If households save $30 billion more at each level of income and the marginal propensity to consume (MPC) is 0.9, the aggregate expenditure line will _____.

If the marginal propensity to consume (MPC) equals 0.9, the multiplier is _____.

If the market interest rate decreases, then there will be _____.