Exam 5: Foundations of the Macroeconomy

An increase in nonincome-determined spending leads to:

What is fiscal policy and what is monetary policy?

The multiplier will increase when saving as a percentage of earned income falls.

The larger change in total output that results from a change in nonincome-determined spending is caused by the:

Since the late 1940s, the American economy has had:

Government purchases of goods and services, and spending from transfer payments:

Assume that total output has increased by $50 billion and 25 percent of additional income is not spent. What was the initial change in nonincome-determined spending that led to that change in output?

Fiscal policy is:

Household spending from transfer payments, and payments for personal income taxes are:

Which of the following is an injection into the spending stream?

If U.S. net exports were a negative number:

The level of economic activity and the size of the circular flow would never change if:

All else equal, which of the following statements is true?

U.S. exports are considered a(n) ________, while U.S. imports are considered a(n)_______.

When injections into the spending stream are greater than leakages, the level of economic activity will:

If total spending increases and the economy is at full employment:

According to Application 5.2, "What's Causing the Economy to Change?,"which of the following is a past explanation for why an economy would slip into a recession?

An economy will expand when:

All other things equal, if business saving is less than investment spending, then injections into the spending stream are:

The phases of a business cycle are: