Question 1

If your planned consumption expenditure is $600 per month and your disposable income is $500 per month,your

Accepted Answer

A) dissaving is $100 per month. 
B) saving is $100 per month. 
C) autonomous consumption is -$100 per month. 
D) autonomous consumption must be zero per month. 
E) induced consumption is $600. 
A) dissaving is $100 per month. 
B) saving is $100 per month. 
C) autonomous consumption is -$100 per month. 
D) autonomous consumption must be zero per month. 
E) induced consumption is $600.

Question 2

-The above table presents data from the nation of Pacifica.Aggregate planned expenditure equals $7.5 trillion when real GDP equals

Accepted Answer

A) $8.5 trillion. 
B) $7.5 trillion. 
C) $4.0 trillion. 
D) $8.0 trillion. 
E) $6.0 trillion. 
A) $8.5 trillion. 
B) $7.5 trillion. 
C) $4.0 trillion. 
D) $8.0 trillion. 
E) $6.0 trillion.

Question 3

When disposable income is $8 trillion,consumption expenditure is $5 trillion;when disposable income is $5 trillion,consumption expenditure is $3 trillion.The MPC is

Accepted Answer

A) (5 + 3)÷ (8 + 5)= 0.615. 
B) (5 - 3)÷ (8 - 5)= 0.667. 
C) (5 + 3)÷ (8 - 5)= 2.667. 
D) (5/8 + 3/5)= 1.225. 
E) (8 - 5)÷ (5 - 3)= 1.333. 
A) (5 + 3)÷ (8 + 5)= 0.615. 
B) (5 - 3)÷ (8 - 5)= 0.667. 
C) (5 + 3)÷ (8 - 5)= 2.667. 
D) (5/8 + 3/5)= 1.225. 
E) (8 - 5)÷ (5 - 3)= 1.333.

Question 4

When disposable income is zero,consumption expenditure is

Accepted Answer

A) negative. 
B) also zero. 
C) equal to induced consumption expenditure. 
D) equal to autonomous consumption. 
E) None of the above answers is correct. 
A) negative. 
B) also zero. 
C) equal to induced consumption expenditure. 
D) equal to autonomous consumption. 
E) None of the above answers is correct.

Question 5

In the aggregate expenditure (AE)model,the economy is driven to its equilibrium by changes in

Accepted Answer

A) government expenditures on goods and services that are the result of changes in real GDP. 
B) investment that are the result of changes in real GDP. 
C) autonomous expenditures that are the result of changes in real GDP. 
D) induced expenditures that are the result of changes in real GDP. 
E) net taxes that are the result of changes in real GDP. 
A) government expenditures on goods and services that are the result of changes in real GDP. 
B) investment that are the result of changes in real GDP. 
C) autonomous expenditures that are the result of changes in real GDP. 
D) induced expenditures that are the result of changes in real GDP. 
E) net taxes that are the result of changes in real GDP.

Question 6

A movement along the consumption function shows the change in consumption expenditure as a result of a change in

Accepted Answer

A) net taxes. 
B) saving. 
C) disposable income. 
D) the interest rate. 
E) the price level. 
A) net taxes. 
B) saving. 
C) disposable income. 
D) the interest rate. 
E) the price level.

Question 7

In an economy with no income taxes or imports,if the MPC is .75,the multiplier is

Accepted Answer

A) 0.33. 
B) 0.50. 
C) 4.00. 
D) 3.00. 
E) 0.25. 
A) 0.33. 
B) 0.50. 
C) 4.00. 
D) 3.00. 
E) 0.25.

Question 8

A rise in the real interest rate ________ consumption expenditure and ________.

Accepted Answer

A) decreases;shifts the consumption function upward 
B) decreases;results in a movement downward along the consumption function 
C) increases;shifts the consumption function upward 
D) increases;shifts the consumption function downward 
E) decreases;shifts the consumption function downward 
A) decreases;shifts the consumption function upward 
B) decreases;results in a movement downward along the consumption function 
C) increases;shifts the consumption function upward 
D) increases;shifts the consumption function downward 
E) decreases;shifts the consumption function downward

Question 9

If investment increases by $100,then the aggregate expenditure model concludes that equilibrium expenditure

Accepted Answer

A) decreases by $100. 
B) increases by $100. 
C) increases by more than $100. 
D) remains unchanged. 
E) increases by less than $100. 
A) decreases by $100. 
B) increases by $100. 
C) increases by more than $100. 
D) remains unchanged. 
E) increases by less than $100.

If your planned consumption expenditure is $600 per month and your disposable income is $500 per month,your

-The above table presents data from the nation of Pacifica.Aggregate planned expenditure equals $7.5 trillion when real GDP equals

When disposable income is $8 trillion,consumption expenditure is $5 trillion;when disposable income is $5 trillion,consumption expenditure is $3 trillion.The MPC is

When disposable income is zero,consumption expenditure is

In the aggregate expenditure (AE)model,the economy is driven to its equilibrium by changes in

A movement along the consumption function shows the change in consumption expenditure as a result of a change in

In an economy with no income taxes or imports,if the MPC is .75,the multiplier is

A rise in the real interest rate consumption expenditure and .

If investment increases by $100,then the aggregate expenditure model concludes that equilibrium expenditure

Getting Started

The Australian and Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Economic Growth

Finance,saving and Investment

Money,the Price Level and Inflation

Aggregate Supply and Aggregate Demand

The Short-Run Policy Trade Off

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 12: Aggregate Expenditure Multiplier

If your planned consumption expenditure is $600 per month and your disposable income is $500 per month,your

-The above table presents data from the nation of Pacifica.Aggregate planned expenditure equals $7.5 trillion when real GDP equals

When disposable income is $8 trillion,consumption expenditure is $5 trillion;when disposable income is $5 trillion,consumption expenditure is $3 trillion.The MPC is

When disposable income is zero,consumption expenditure is

In the aggregate expenditure (AE)model,the economy is driven to its equilibrium by changes in

A movement along the consumption function shows the change in consumption expenditure as a result of a change in

In an economy with no income taxes or imports,if the MPC is .75,the multiplier is

A rise in the real interest rate ________ consumption expenditure and ________.

If investment increases by $100,then the aggregate expenditure model concludes that equilibrium expenditure

Getting Started

The Australian and Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Economic Growth

Finance,saving and Investment

Money,the Price Level and Inflation

Aggregate Supply and Aggregate Demand

The Short-Run Policy Trade Off

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

A rise in the real interest rate consumption expenditure and .