Exam 14: Aggregate Expenditure Multiplier

An insight into business cycles is gained by the fact that

In an economy with no income taxes or imports, the marginal propensity to consume is 0.80.The expenditure multiplier is

The level of equilibrium expenditure at each price level determines

If aggregate planned expenditure exceeds GDP, then

Real GDP (billions of 2005 dollars) Aggregate expenditure (billions of 2005 dollars) 10 10.50 11 11.25 12 12.00 13 12.75 14 13.50 15 14.25 -The above table gives real GDP and the aggregate expenditure schedule.When real GDP is $10 billion, the amount of unplanned investment is

Real GDP, Y (billions of 2005 dollars) Consumption expenditure, C Investment, I Government expenditure, G (billions of 2005 dollars) (billions of 2005 dollars) (billions of 2005 dollars) 100 150 150 100 200 200 150 100 300 250 150 100 400 300 150 100 500 350 150 100 600 400 150 100 700 450 150 100 800 500 150 100 900 550 150 100 -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

At the beginning of a recession, the expenditure multiplier

Disposable income (trillions of 2005 dollars) Consumption expenditure (trillions of 2005 dollars) 0.0 1.8 1.0 2.6 2.0 3.2 3.0 4.0 4.0 5.8 -The above table has data from the nation of Atlantica.Based on these data, when disposal income equals $3.0 trillion,

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

In order to analyze the factors that determine the quantity of real GDP demanded, in the aggregate expenditure model we assume that

If the price level increases, the AE curve shifts

Consumption Real GDP, Y (trillions of Government (trillions of Investment, I (trillions of expenditure, G (trillions of Exports, X (trillions of Imports, M (trillions of 2005 dollars) 2005 dollars) 2005 dollars) 2005 dollars) 2005 dollars) 2005 dollars) 0 1.00 2 1 1 0.50 1 1.75 2 1 1 0.75 2 2.50 2 1 1 1.00 3 3.25 2 1 1 1.25 4 4.00 2 1 1 1.50 5 4.75 2 1 1 1.75 6 5.50 2 1 1 2.00 7 6.25 2 1 1 2.25 8 7.00 2 1 1 2.50 9 7.75 2 1 1 2.75 10 8.50 2 1 1 3.00 -The table above gives data for the nation of Mosh.If real GDP is $6 trillion, then

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

If autonomous imports increase, then the aggregate expenditure curve shifts ________ and equilibrium real GDP ________.

Which of the following increases as a result of an increase in real GDP? i. autonomous expenditure ii. induced expenditure iii. potential GDP

-In the figure above, if real GDP is $12 trillion, aggregate planned expenditure is ________ $12 trillion and unplanned inventory changes are ________.

As disposable income ________ planned consumption expenditure ________ by a ________ amount.

When GDP = $2.5 trillion, C = $1.0 trillion, I = $0.6 trillion, G = $0.4 trillion, and NX = $0.Then

The consumption function shows that when disposable income increases by one dollar, consumption expenditure

Real GDP, Y (billions of 2005 dollars) Consumption expenditure, C (billions of 2005 Investment, I Government expendithare, G (billions of 2005 (billions of 2005 dollars) dollars) 100 150 150 150 200 200 150 150 300 250 150 150 400 300 150 150 500 350 150 150 600 400 150 150 700 450 150 150 800 500 150 150 900 550 150 150 -The above table gives data for the nation of Mouseville.There are no imports into or exports from Mouseville.The equilibrium level of real GDP is