Exam 17: The Determination of National Output and the Keynesian Multiplier

The following question are based on the following rates-of-return table for five independent investment projects: -If the interest rate is 7 percent,the number of projects undertaken would be

The marginal propensity to consume is the

The following question are based on the following consumption function for a hypothetical economy. Assume autonomous intended investment is $200 billion and there are no government expenditures, exports, or imports. -The current equilibrium level of GDP is ________ billion.

One minus the marginal propensity to consume equals

John Maynard Keynes shocked the economic world with his theory that the Great Depression could continue in a never-ending downward spiral unless government intervened.According to Keynes,the reason the economy could NOT pull itself out of the Depression was that

The following question are based on the following information: -When the total amount spent on final goods and services falls short of the total value of final goods and services produced

The following question are based on the following information: -If intended spending is greater than GDP

In national output determination theory,personal consumption expenditures depend primarily on

A change in investment spending NOT caused by a change in income or GDP is a(n)________ change.

An upward shift in the saving function

If an economy is operating at a point on the C + I line that lies above the 45-degree line

The additional amount a family spends on consumption from an additional dollar of disposable income is called the

GDP is at the equilibrium level when

The relationship between household spending and disposable income is known as the

The reciprocal of the marginal propensity to save is called the