Exam 5: Foundations of the Macroeconomy

What are net exports, and under what circumstances would a country's net export position lead to a decrease in total spending?

If the economy were at or near full employment and leakages from the spending stream were less than injections, you would expect the general level of prices to:

Injections are spending from:

The phase of the business cycle during which economic activity hits its minimum level is the:

Income-determined spending and nonincome-determined spending are both subject to the multiplier effect.

Household spending is the _______ spending category in the economy.

An economy's maximum output is reached during the expansion phase of the business cycle.

The smallest major sector of the economy is the:

Business investment spending would likely decrease following an increase in:

The foreign sector will stimulate economy activity in a country when:

Profit expectations generally have little or no influence on investment spending decisions.

Over time, the most stable spending in the economy is:

A multiplier effect of 3 means that:

If the economy were slipping into a recession, the preferred fiscal and monetary policies would lead to:

If an economy is at full employment and the government increases its purchases, the result will likely be:

You would expect the level of economic activity to decrease if there were an increase in government:

Which of the following statements is true?

If the levels of output, income, and employment have decreased, there has been:

If nonincome-determined spending increases by $200 million, and 25 percent of additional income received is not spent, the level of economic activity will increase by:

An increase in transfer payments would directly increase: