Question 1

The components of aggregate expenditure that are NOT influenced by GDP are known as

Accepted Answer

A) induced expenditure. 
B) planned expenditure. 
C) fixed expenditure. 
D) autonomous expenditure. 
E) unplanned expenditure. 
A) induced expenditure. 
B) planned expenditure. 
C) fixed expenditure. 
D) autonomous expenditure. 
E) unplanned expenditure.

Question 2

-The above table gives data for the nation of South Hampton.There are no imports into or exports from South Hampton.If real GDP is equal to $900 billion,then

Accepted Answer

A) aggregate planned expenditure will need to decrease to reach the equilibrium. 
B) aggregate planned expenditure is equal to real GDP. 
C) aggregate planned expenditure is less than real GDP. 
D) this is the equilibrium level of real GDP. 
E) aggregate planned expenditure is greater than real GDP. 
A) aggregate planned expenditure will need to decrease to reach the equilibrium. 
B) aggregate planned expenditure is equal to real GDP. 
C) aggregate planned expenditure is less than real GDP. 
D) this is the equilibrium level of real GDP. 
E) aggregate planned expenditure is greater than real GDP.

Question 3

As a household's disposable income increases,its autonomous expenditures ________ and its induced expenditures ________.

Accepted Answer

A) decrease;do not change 
B) do not change;increase by a smaller amount than the increase in income 
C) do not change;increase by an amount equal to the increase in income 
D) increase;do not change 
E) increase;increase by a smaller amount than the increase in income 
A) decrease;do not change 
B) do not change;increase by a smaller amount than the increase in income 
C) do not change;increase by an amount equal to the increase in income 
D) increase;do not change 
E) increase;increase by a smaller amount than the increase in income

Question 4

-The figure above shows a nation's consumption function.If disposable income is $4 trillion,then the MPC is ________ and saving is ________.

Accepted Answer

A) positive;zero 
B) negative;positive 
C) negative;negative 
D) positive;positive 
E) positive;negative 
A) positive;zero 
B) negative;positive 
C) negative;negative 
D) positive;positive 
E) positive;negative

Question 5

The figure above shows two aggregate expenditure lines.
-In the figure above,if the marginal propensity to import increased,the aggregate expenditure lines would ________ and the multiplier would ________ in value.

Accepted Answer

A) become less steep;fall 
B) become less steep;rise 
C) not change;fall 
D) become steeper;rise 
E) not change;rise 
A) become less steep;fall 
B) become less steep;rise 
C) not change;fall 
D) become steeper;rise 
E) not change;rise

Question 6

________ shifts the consumption function upward.

Accepted Answer

A) An increase in expected future disposable income 
B) An increase in the real interest rate 
C) A decrease in the marginal propensity to consume 
D) An increase in the price level 
E) An increase in disposable income 
A) An increase in expected future disposable income 
B) An increase in the real interest rate 
C) A decrease in the marginal propensity to consume 
D) An increase in the price level 
E) An increase in disposable income

Question 7

-The above table gives data for the nation of South Hampton.There are no imports into or exports from South Hampton.Aggregate planned expenditure is less than actual expenditure if real GDP is

Accepted Answer

A) more than $700 billion. 
B) at the equilibrium level. 
C) less than $700 billion. 
D) $700 billion. 
E) Both answers A and C are correct. 
A) more than $700 billion. 
B) at the equilibrium level. 
C) less than $700 billion. 
D) $700 billion. 
E) Both answers A and C are correct.

Question 8

If the slope of the aggregate expenditure curve is 0.75,the expenditure multiplier is equal to

Accepted Answer

A) 4.00. 
B) 0.25. 
C) 5.00. 
D) 1.33. 
E) 0.75. 
A) 4.00. 
B) 0.25. 
C) 5.00. 
D) 1.33. 
E) 0.75.

Question 9

The figure above shows two aggregate expenditure lines.
-In the figure above,what is the size of the multiplier?

Accepted Answer

A) 4.0 
B) 0.25 
C) $2 trillion 
D) $0.5 trillion 
E) More information is needed to determine the size of the multiplier. 
A) 4.0 
B) 0.25 
C) $2 trillion 
D) $0.5 trillion 
E) More information is needed to determine the size of the multiplier.

Question 10

-In the figure above,what is the MPC?

Accepted Answer

A) 0.50 
B) 1.00 
C) 0.75 
D) 0.90 
E) 0.80 
A) 0.50 
B) 1.00 
C) 0.75 
D) 0.90 
E) 0.80

Question 11

-The above table has data from the nation of Atlantica.Based on these data,what is the marginal propensity to consume?

Accepted Answer

A) 1.00 
B) 1.50 
C) 0.50 
D) 1.33 
E) 0.75 
A) 1.00 
B) 1.50 
C) 0.50 
D) 1.33 
E) 0.75

Question 12

The marginal propensity to consume equals

Accepted Answer

A) consumption expenditure divided by the change in disposable income. 
B) the change in autonomous consumption divided by the change in induced consumption. 
C) consumption expenditure divided by disposable income. 
D) the change in consumption expenditure divided by the change in disposable income. 
E) the change in consumption expenditure divided by disposable income. 
A) consumption expenditure divided by the change in disposable income. 
B) the change in autonomous consumption divided by the change in induced consumption. 
C) consumption expenditure divided by disposable income. 
D) the change in consumption expenditure divided by the change in disposable income. 
E) the change in consumption expenditure divided by disposable income.

Question 13

Which of the following is NOT a part of aggregate expenditure?

Accepted Answer

A) Government expenditure 
B) Exports 
C) Imports 
D) Taxes 
E) Investment 
A) Government expenditure 
B) Exports 
C) Imports 
D) Taxes 
E) Investment

Question 14

Real GDP is $13 trillion and aggregate planned expenditure is $14 trillion.As a result,unplanned inventory change is ________ and real GDP ________.

Accepted Answer

A) negative;decreases 
B) negative;does not change 
C) positive;increases 
D) positive;decreases 
E) negative;increases 
A) negative;decreases 
B) negative;does not change 
C) positive;increases 
D) positive;decreases 
E) negative;increases

Question 15

When aggregate planned expenditure exceeds real GDP,there are unplanned ________ in inventories,and firms ________ production,so that real GDP ________.

Accepted Answer

A) decreases;increase;increases 
B) decreases;decrease;increases 
C) decreases;decrease;decreases 
D) increases;increase;increases 
E) increases;decrease;decreases 
A) decreases;increase;increases 
B) decreases;decrease;increases 
C) decreases;decrease;decreases 
D) increases;increase;increases 
E) increases;decrease;decreases

Question 16

When the price level ________,equilibrium expenditure ________ and the quantity of real GDP demanded ________.

Accepted Answer

A) rises;increases;decreases 
B) rises;decreases;increases 
C) falls;increases;decreases 
D) rises;increases;increases 
E) falls;increases;increases 
A) rises;increases;decreases 
B) rises;decreases;increases 
C) falls;increases;decreases 
D) rises;increases;increases 
E) falls;increases;increases

Question 17

The AE curve illustrates the relationship between

Accepted Answer

A) the quantity of real GDP demanded and the price level. 
B) the interest rate and aggregate planned expenditure. 
C) real GDP and the interest rate. 
D) aggregate planned expenditure and real GDP. 
E) real GDP and actual expenditure. 
A) the quantity of real GDP demanded and the price level. 
B) the interest rate and aggregate planned expenditure. 
C) real GDP and the interest rate. 
D) aggregate planned expenditure and real GDP. 
E) real GDP and actual expenditure.

Question 18

A change in the price level ________ the AE curve and ________ the AD curve.

Accepted Answer

A) shifts;results in a movement along 
B) has no effect on;results in a movement along 
C) results in a movement along;shifts 
D) shifts;shifts 
E) results in a movement along;results in a movement along 
A) shifts;results in a movement along 
B) has no effect on;results in a movement along 
C) results in a movement along;shifts 
D) shifts;shifts 
E) results in a movement along;results in a movement along

Question 19

-The table above gives data for the nation of Mosh.The amount of autonomous expenditure is

Accepted Answer

A) $9.0 trillion. 
B) $4.5 trillion. 
C) $4 trillion. 
D) $1.5 trillion. 
E) not shown in this table. 
A) $9.0 trillion. 
B) $4.5 trillion. 
C) $4 trillion. 
D) $1.5 trillion. 
E) not shown in this table.

Question 20

The equilibrium level of aggregate planned expenditure is found where

Accepted Answer

A) there is no saving and no dissaving. 
B) the price level is rising at a constant rate. 
C) autonomous expenditure equals equilibrium expenditure. 
D) aggregate planned expenditure equals real GDP. 
E) net exports is zero. 
A) there is no saving and no dissaving. 
B) the price level is rising at a constant rate. 
C) autonomous expenditure equals equilibrium expenditure. 
D) aggregate planned expenditure equals real GDP. 
E) net exports is zero.

The components of aggregate expenditure that are NOT influenced by GDP are known as

-The above table gives data for the nation of South Hampton.There are no imports into or exports from South Hampton.If real GDP is equal to $900 billion,then

As a household's disposable income increases,its autonomous expenditures and its induced expenditures .

-The figure above shows a nation's consumption function.If disposable income is $4 trillion,then the MPC is and saving is .

The figure above shows two aggregate expenditure lines. -In the figure above,if the marginal propensity to import increased,the aggregate expenditure lines would and the multiplier would in value.

________ shifts the consumption function upward.

-The above table gives data for the nation of South Hampton.There are no imports into or exports from South Hampton.Aggregate planned expenditure is less than actual expenditure if real GDP is

If the slope of the aggregate expenditure curve is 0.75,the expenditure multiplier is equal to

The figure above shows two aggregate expenditure lines. -In the figure above,what is the size of the multiplier?

-In the figure above,what is the MPC?

-The above table has data from the nation of Atlantica.Based on these data,what is the marginal propensity to consume?

The marginal propensity to consume equals

Which of the following is NOT a part of aggregate expenditure?

Real GDP is $13 trillion and aggregate planned expenditure is $14 trillion.As a result,unplanned inventory change is and real GDP .

When aggregate planned expenditure exceeds real GDP,there are unplanned in inventories,and firms production,so that real GDP .

When the price level ,equilibrium expenditure and the quantity of real GDP demanded .

The AE curve illustrates the relationship between

A change in the price level the AE curve and the AD curve.

-The table above gives data for the nation of Mosh.The amount of autonomous expenditure is

The equilibrium level of aggregate planned expenditure is found where

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

The components of aggregate expenditure that are NOT influenced by GDP are known as

-The above table gives data for the nation of South Hampton.There are no imports into or exports from South Hampton.If real GDP is equal to $900 billion,then

As a household's disposable income increases,its autonomous expenditures ________ and its induced expenditures ________.

-The figure above shows a nation's consumption function.If disposable income is $4 trillion,then the MPC is ________ and saving is ________.

The figure above shows two aggregate expenditure lines. -In the figure above,if the marginal propensity to import increased,the aggregate expenditure lines would ________ and the multiplier would ________ in value.

________ shifts the consumption function upward.

-The above table gives data for the nation of South Hampton.There are no imports into or exports from South Hampton.Aggregate planned expenditure is less than actual expenditure if real GDP is

If the slope of the aggregate expenditure curve is 0.75,the expenditure multiplier is equal to

The figure above shows two aggregate expenditure lines. -In the figure above,what is the size of the multiplier?

-In the figure above,what is the MPC?

-The above table has data from the nation of Atlantica.Based on these data,what is the marginal propensity to consume?

The marginal propensity to consume equals

Which of the following is NOT a part of aggregate expenditure?

Real GDP is $13 trillion and aggregate planned expenditure is $14 trillion.As a result,unplanned inventory change is ________ and real GDP ________.

When aggregate planned expenditure exceeds real GDP,there are unplanned ________ in inventories,and firms ________ production,so that real GDP ________.

When the price level ________,equilibrium expenditure ________ and the quantity of real GDP demanded ________.

The AE curve illustrates the relationship between

A change in the price level ________ the AE curve and ________ the AD curve.

-The table above gives data for the nation of Mosh.The amount of autonomous expenditure is

The equilibrium level of aggregate planned expenditure is found where

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

As a household's disposable income increases,its autonomous expenditures and its induced expenditures .

-The figure above shows a nation's consumption function.If disposable income is $4 trillion,then the MPC is and saving is .

The figure above shows two aggregate expenditure lines. -In the figure above,if the marginal propensity to import increased,the aggregate expenditure lines would and the multiplier would in value.

Real GDP is $13 trillion and aggregate planned expenditure is $14 trillion.As a result,unplanned inventory change is and real GDP .

When aggregate planned expenditure exceeds real GDP,there are unplanned in inventories,and firms production,so that real GDP .

When the price level ,equilibrium expenditure and the quantity of real GDP demanded .

A change in the price level the AE curve and the AD curve.