Exam 12: Aggregate Expenditure Multiplier

When the multiplier is ________,an autonomous decrease in investment of $200 billion decreases equilibrium real GDP by $400 billion.When the multiplier is ________,an autonomous decrease in investment of $200 billion decreases equilibrium real GDP by $800 billion.

-The above table has data from the nation of Atlantica.Based on these data,when disposal income equals $3.0 trillion,

During 2015,a country reported that its real GDP increased by $3.0 billion.If the slope of its aggregate planned expenditure curve is 0.9,then which of the following might have led to the increase in real GDP?

On a graph of the consumption function,where the consumption function is below the 45° line,there is

When aggregate planned expenditure is less than GDP,

The smaller the slope of the aggregate planned expenditure (AE)curve,the

A shift in the aggregate planned expenditure curve as a result of an increase in the price level results in

A movement along the AE curve arises from a change in ________,and a movement along the AD curve arises from a change in ________.

If the marginal propensity to import is ________,then a $2 trillion increase in disposable income would increase import expenditure by $0.2 trillion.If the marginal propensity to import is ________,then a $2 trillion increase in disposable income would increase import expenditure by $0.6 trillion.

-The above table has data from the nation of Atlantica.Based on these data,at what point does saving equal zero?

-The above table gives data for the nation of Mojo.At what level of real GDP is the economy at equilibrium expenditure?

During 2015,exports increase from $1.0 trillion to $1.5 trillion.If the slope of the aggregate planned expenditure (AE)curve is 0.75,real GDP increases by

In the aggregate expenditure (AE)model,when real GDP exceeds aggregate planned expenditure,actual inventories ________ planned inventories and real GDP ________.

-The above table gives real GDP and the aggregate expenditure schedule.Equilibrium real GDP is

-The above table gives real GDP and the aggregate expenditure schedule.When real GDP is $10 billion,the amount of unplanned investment is

-The above table presents data from the nation of Pacifica.When real GDP equals $2.0 trillion,aggregate planned expenditure equals

The multiplier is 5 and,as a result of a change in expenditure,equilibrium expenditure and real GDP change by $200 billion.What was the initial change in autonomous expenditure?

An economy has no imports or income taxes.The MPC is 0.75 and real GDP is $120 billion.Businesses increase investment by $4 billion.The multiplier is ________ and the change in real GDP from the increase in investment is ________ billion.

When the change in unplanned inventories is positive,then

According to the aggregate expenditure model,when faced with unwanted inventory,firms