Exam 25: Aggregate Demand and the Powerful Consumer

The typical value for the MPC is less than 1.0.

The relationship between consumption and disposable income is very unreliable and unpredictable.

Aggregate demand is a ____ rather than a ____.

A scatter diagram could help a policy maker decide on the size of a tax cut necessary to increase consumer expenditures by a certain amount.

Which of the following transactions is included in GDP?

Which of the following will most likely cause movement along the consumption function?

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

Which of the following should be subtracted while calculating aggregate demand of the U.S.?

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

Historical data depicted on a scatter diagram show that consumer spending and disposable income

Most statistical studies on the relationship between real interest rates and saving conclude that higher real interest rates

If disposable income increases by $400 billion and consumption increases by $300 billion, the MPC equals

Why does an increase in the price level tend to cause the consumption function to shift downward?

-According to the data in Table 8-1, the value of GDP is

If the price level increases, we would expect consumers to

If the stock market falls by 25 percent next year and remains down, what is most likely to happen to the consumption function?

In the circular flow model, which of the following is considered a leakage?

The marginal propensity to consume is

The accounting identity for the economy's factor payments can be written as ____.

GDP can be calculated as the final demand for goods and services by consumers, businesses,