Question 1

Movement along the aggregate demand curve may be caused by a change in autonomous investment spending.

Accepted Answer

A) True 
 B)False

Question 2

A decrease in the price level in an economy will _____.

Accepted Answer

A)  shift the aggregate expenditure line upward 
B)  shift the aggregate expenditure line downward 
C)  cause an upward movement along the aggregate expenditure line 
D)  cause a downward movement along the aggregate expenditure line 
E)  shift the aggregate demand curve leftward 
A)  shift the aggregate expenditure line upward 
B)  shift the aggregate expenditure line downward 
C)  cause an upward movement along the aggregate expenditure line 
D)  cause a downward movement along the aggregate expenditure line 
E)  shift the aggregate demand curve leftward

Question 3

The table given below shows the disposable income and consumption of a household. In the table below, the level of saving at a disposable income of $1,200 is:

Accepted Answer

A)  $80 
B)  $240 
C)  $950 
D)  $1,200 
E)  $1,300 
A)  $80 
B)  $240 
C)  $950 
D)  $1,200 
E)  $1,300

Question 4

If income increases by $100 and saving increases by $25, the slope of the consumption function equals _____.

Accepted Answer

A)  1/4 
B)  1/5 
C)  1/2 
D)  3/4 
E)  3/5 
A)  1/4 
B)  1/5 
C)  1/2 
D)  3/4 
E)  3/5

Question 5

Which of the following is most likely to cause a rightward shift of the investment demand curve?

Accepted Answer

A)  An increase in income 
B)  A decrease in the market interest rate 
C)  An improvement in business expectations 
D)  An increase in the market rate of interest 
E)  A decrease in income 
A)  An increase in income 
B)  A decrease in the market interest rate 
C)  An improvement in business expectations 
D)  An increase in the market rate of interest 
E)  A decrease in income

Question 6

The aggregate demand curve of an economy:

Accepted Answer

A)  is downward sloping. 
B)  first declines and then becomes positively sloped. 
C)  is horizontal. 
D)  is vertical. 
E)  first rises and then becomes negatively sloped. 
A)  is downward sloping. 
B)  first declines and then becomes positively sloped. 
C)  is horizontal. 
D)  is vertical. 
E)  first rises and then becomes negatively sloped.

Question 7

Increases in the marginal propensity to consume (MPC), other things constant, _____.

Accepted Answer

A)  increase the value of the multiplier 
B)  decrease the value of the multiplier 
C)  increase the marginal propensity to save 
D)  shift the aggregate expenditure curve downward 
E)  cause a downward movement along the aggregate expenditure curve 
A)  increase the value of the multiplier 
B)  decrease the value of the multiplier 
C)  increase the marginal propensity to save 
D)  shift the aggregate expenditure curve downward 
E)  cause a downward movement along the aggregate expenditure curve

Question 8

If a household's income rises from $46,000 to $46,700 and its consumption spending rises from $35,800 to $36,400, then its:

Accepted Answer

A)  marginal propensity to consume is 0.86. 
B)  marginal propensity to consume is 0.99. 
C)  marginal propensity to consume is 0.98. 
D)  marginal propensity to save is 0.01. 
E)  marginal propensity to save is 0.86. 
A)  marginal propensity to consume is 0.86. 
B)  marginal propensity to consume is 0.99. 
C)  marginal propensity to consume is 0.98. 
D)  marginal propensity to save is 0.01. 
E)  marginal propensity to save is 0.86.

Question 9

A decrease in the price level in an economy implies that _____.

Accepted Answer

A)  the spending multiplier will be equal to the marginal propensity to consume 
B)  there will be an increase in investment 
C)  there will be a decrease in investment 
D)  the value of the spending multiplier will be equal to one 
E)  the value of the spending multiplier will be equal to zero 
A)  the spending multiplier will be equal to the marginal propensity to consume 
B)  there will be an increase in investment 
C)  there will be a decrease in investment 
D)  the value of the spending multiplier will be equal to one 
E)  the value of the spending multiplier will be equal to zero

Question 10

Which of the following is not true about a change in the price level?

Accepted Answer

A)  It will shift the aggregate demand curve. 
B)  It will shift the aggregate expenditure curve. 
C)  It will result in a new value of equilibrium real GDP demanded. 
D)  It will change the real value of dollar-denominated assets. 
E)  It will shift the consumption function. 
A)  It will shift the aggregate demand curve. 
B)  It will shift the aggregate expenditure curve. 
C)  It will result in a new value of equilibrium real GDP demanded. 
D)  It will change the real value of dollar-denominated assets. 
E)  It will shift the consumption function.

Movement along the aggregate demand curve may be caused by a change in autonomous investment spending.

A decrease in the price level in an economy will _____.

The table given below shows the disposable income and consumption of a household. In the table below, the level of saving at a disposable income of $1,200 is:

If income increases by $100 and saving increases by $25, the slope of the consumption function equals _____.

Which of the following is most likely to cause a rightward shift of the investment demand curve?

The aggregate demand curve of an economy:

Increases in the marginal propensity to consume (MPC), other things constant, _____.

If a household's income rises from $46,000 to $46,700 and its consumption spending rises from $35,800 to $36,400, then its:

A decrease in the price level in an economy implies that _____.

Which of the following is not true about a change in the price level?

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Unemployment and Inflation

Us Productivity and Growth

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 9: Aggregate Demand

Movement along the aggregate demand curve may be caused by a change in autonomous investment spending.

A decrease in the price level in an economy will _____.

The table given below shows the disposable income and consumption of a household. In the table below, the level of saving at a disposable income of $1,200 is:

If income increases by $100 and saving increases by $25, the slope of the consumption function equals _____.

Which of the following is most likely to cause a rightward shift of the investment demand curve?

The aggregate demand curve of an economy:

Increases in the marginal propensity to consume (MPC), other things constant, _____.

If a household's income rises from $46,000 to $46,700 and its consumption spending rises from $35,800 to $36,400, then its:

A decrease in the price level in an economy implies that _____.

Which of the following is not true about a change in the price level?

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Unemployment and Inflation

Us Productivity and Growth

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters