Exam 5: Foundations of the Macroeconomy

Money received by a household from the government for which there is no work directly performed in return is:

Investment spending fluctuates from year to year due to changes in:

Typically, when real GDP goes up over a period of, say, one year, the rate of:

The economy will contract when:

The multiplier effect is equal to the change in non-income-determined spending divided by the percentage of additional income that is not spent.

Personal consumption expenditures would likely increase if there were an increase in:

Monetary policy is designed to affect the level of economic activity by:

If non-income-determined spending increases by $40 billion, and 25 percent of additional income is not spent, the level of economic activity will grow by $160 billion.

To stimulate an economy in a recession, the appropriate fiscal policy response would be to:

Application 5.3, "Ripples through the Economy,"illustrates in part how:

The sector of the economy which is the major cause of changes in the level of economic activity is the:

Investment spending is influenced by:

Total spending on newly produced goods and services:

Assuming all other leakages and injections are equal, an economy will contract if total saving is greater than total investment.

Which of the following arguments was NOT cited in Up for Debate: Is Saving a Healthy Habit?

The sector that purchases the most goods and services in the U.S. economy is the ________________ sector.

A decrease in interest rates would:

Which of the following is a leakage from the spending stream?

The multiplier effect would NOT be initiated by an increase in:

The most important determinant of an economy's levels of total output, employment, and income is: