Exam 8: Aggregate Demand and the Powerful Consumer

The U.S.experience with tax cuts and tax increases since 1975 suggests that

Which of the following would lead you to predict an upward shift in the consumption function?

"Men are disposed,as a rule,and on the average,to increase their consumption as their income increases,but not by as much as the increase in their incomes." Which of the following is consistent with this statement by J.M.Keynes?

Government spending is a leakage out of the circular flow of income and spending.

Which of the following is considered to be an investment in economists' point of view?

Inventories are goods that can be considered as "purchased" by

Suppose the stock market rises,causing a rapid increase in consumers' wealth.This would lead to

Employee compensation accounts for about what percentage of national income?

One difficulty of computing the value of GDP is that there are no market prices for

According to the relationship represented by the consumption function,governments can indirectly decrease consumption spending by

Do economists know the value of the MPC for most economies?

In Macronesia,the MPC is approximately .80.If disposable income changes from 1,000 billion pukas to 1,500 billion pukas,then consumption will change by a(n)

Bank accounts and bonds are examples of money-fixed assets.

For each $1 of a tax cut,economists expect consumption to

The largest income component in the national income accounts is

Which of the following would be most likely to shift the consumption function downward?

Based on the relative size of factor payments,the most important resource in the U.S.economy is

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

A change in the value of consumer's stock market holdings will cause a shift in the consumption function.

A decrease in disposable income causes a shift in the consumption function.