\[\begin{array} { c c c c c c } \begin{array} { c } \text { Consumption } \\ \text { Real GDP, } Y \\ \text { (trillions of } \end{array} & \begin{array} { c } \text { Government } \\ \text { (trillions of } \end{array} & \begin{array} { c } \text { Investment, I } \\ \text { (trillions of } \end{array} & \begin{array} { c } \text { expenditure, } G \\ \text { (trillions of } \end{array} & \begin{array} { c } \text { Exports, } X \\ \text { (trillions of } \end{array} & \begin{array} { c } \text { Imports, } M \\ \text { (trillions of } \end{array} \\ 2005 \text { dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & 2005 \text { dollars) } \\ \hline 0 & 1.00 & 2 & 1 & 1 & 0.50 \\ 1 & 1.75 & 2 & 1 & 1 & 0.75 \\ 2 & 2.50 & 2 & 1 & 1 & 1.00 \\ 3 & 3.25 & 2 & 1 & 1 & 1.25 \\ 4 & 4.00 & 2 & 1 & 1 & 1.50 \\ 5 & 4.75 & 2 & 1 & 1 & 1.75 \\ 6 & 5.50 & 2 & 1 & 1 & 2.00 \\ 7 & 6.25 & 2 & 1 & 1 & 2.25 \\ 8 & 7.00 & 2 & 1 & 1 & 2.50 \\ 9 & 7.75 & 2 & 1 & 1 & 2.75 \\ 10 & 8.50 & 2 & 1 & 1 & 3.00 \end{array}\] -The table above gives data for the nation of Mosh.In Mosh, equilibrium expenditure equals

A) $4 trillion. B) $6 trillion. C) $9 trillion. D) $7 trillion. E) $10 trillion. A) $4 trillion. B) $6 trillion. C) $9 trillion. D) $7 trillion. E) $10 trillion.

\[\begin{array} { c c } \begin{array} { c } \text { Disposable income } \\ \text { (trillions of 2005 dollars) } \end{array} & \begin{array} { c } \text { Consumption expenditure } \\ \text { (trillions of 2005 dollars) } \end{array} \\ \hline 0.0 & 1.5 \\ 2.0 & 3.0 \\ 4.0 & 4.5 \\ 6.0 & 6.0 \\ 8.0 & 7.5 \\ \hline \end{array}\] -The above table has data from the nation of Atlantica.Based on these data, when disposable income equals 8.0 there is

A) dissavings of $7.5 trillion. B) savings of $15.5 trillion. C) dissavings of $15.5 trillion. D) dissavings of $0.5 trillion. E) savings of $0.5 trillion. A) dissavings of $7.5 trillion. B) savings of $15.5 trillion. C) dissavings of $15.5 trillion. D) dissavings of $0.5 trillion. E) savings of $0.5 trillion.

\[\begin{array} { c c c c c c } \begin{array} { c } \text { Consumption } \\ \text { Real GDP, } Y \\ \text { (trillions of } \end{array} & \begin{array} { c } \text { Government } \\ \text { (trillions of } \end{array} & \begin{array} { c } \text { Investment, I } \\ \text { (trillions of } \end{array} & \begin{array} { c } \text { expenditure, } G \\ \text { (trillions of } \end{array} & \begin{array} { c } \text { Exports, } X \\ \text { (trillions of } \end{array} & \begin{array} { c } \text { Imports, } M \\ \text { (trillions of } \end{array} \\ 2005 \text { dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & 2005 \text { dollars) } \\ \hline 0 & 1.00 & 2 & 1 & 1 & 0.50 \\ 1 & 1.75 & 2 & 1 & 1 & 0.75 \\ 2 & 2.50 & 2 & 1 & 1 & 1.00 \\ 3 & 3.25 & 2 & 1 & 1 & 1.25 \\ 4 & 4.00 & 2 & 1 & 1 & 1.50 \\ 5 & 4.75 & 2 & 1 & 1 & 1.75 \\ 6 & 5.50 & 2 & 1 & 1 & 2.00 \\ 7 & 6.25 & 2 & 1 & 1 & 2.25 \\ 8 & 7.00 & 2 & 1 & 1 & 2.50 \\ 9 & 7.75 & 2 & 1 & 1 & 2.75 \\ 10 & 8.50 & 2 & 1 & 1 & 3.00 \end{array}\] -The table above gives data for the nation of Mosh.The MPC of the economy is

A) indeterminate with the information provided. B) 1. C) .75. D) .80. E) .90. A) indeterminate with the information provided. B) 1. C) .75. D) .80. E) .90.

Exam 14: Aggregate Expenditure Multiplier

The figure above shows three different consumption functions for a nation. -Which of the following events could result in the consumption function shifting from CF₀ to CF₂?

(Multiple Choice)

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Question 221

The slope of the consumption function is

(Multiple Choice)

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Question 222

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 new level of real GDP is

(Multiple Choice)

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Question 223

-The above table contains information about the nation of Syldavia.There are no income taxes or imports in this nation.When real GDP is $15 billion, firms' inventories experience an unplanned

(Multiple Choice)

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Question 224

The value of the expenditure multiplier changes if the ________ changes. i. marginal tax rate Ii) marginal propensity to import Iii) marginal propensity to consume

(Multiple Choice)

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Question 225

The fraction of a change in disposable income that is spent on consumption is the

(Multiple Choice)

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Question 226

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.In Mosh, equilibrium expenditure equals

(Multiple Choice)

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Question 227

The multiplier means that an increase in investment results in aggregate expenditure that is the increase in investment.

(Multiple Choice)

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Question 228

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

(Multiple Choice)

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Question 229

The components of aggregate expenditure that change when real GDP changes are known as

(Multiple Choice)

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Question 230

If the expenditure multiplier is 5, the slope of the aggregate expenditure (AE) curve is

(Multiple Choice)

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Question 231

What is the value of the MPC if $66 out of every $100 increase in disposable income is consumed?

(Multiple Choice)

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Question 232

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

(Multiple Choice)

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Question 233

Disposable income (trillions of 2005 dollars) Consumption expenditure (trillions of 2005 dollars) 0.0 1.5 2.0 3.0 4.0 4.5 6.0 6.0 8.0 7.5 -The above table has data from the nation of Atlantica.Based on these data, when disposable income equals 8.0 there is

(Multiple Choice)

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Question 234

An increase in expected future disposable income consumption expenditure and .

(Multiple Choice)

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Question 235

The expenditure 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?

(Multiple Choice)

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Question 236

Explain the relationship between real GDP and aggregate planned expenditure, AE.What change to inventories takes place when the two are not equal?

(Essay)

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Question 237

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.The MPC of the economy is

(Multiple Choice)

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Question 238

What is the consumption function? What factor leads to a movement along the consumption function?

(Essay)

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Question 239

-In the figure above, when disposable income equals $8 trillion,

(Multiple Choice)

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Question 240

The figure above shows three different consumption functions for a nation. -Which of the following events could result in the consumption function shifting from CF₀ to CF₂?

The slope of the consumption function is

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 new level of real GDP is

-The above table contains information about the nation of Syldavia.There are no income taxes or imports in this nation.When real GDP is $15 billion, firms' inventories experience an unplanned

The value of the expenditure multiplier changes if the ________ changes. i. marginal tax rate Ii) marginal propensity to import Iii) marginal propensity to consume

The fraction of a change in disposable income that is spent on consumption is the

The multiplier means that an increase in investment results in aggregate expenditure that is the increase in investment.

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

The components of aggregate expenditure that change when real GDP changes are known as

If the expenditure multiplier is 5, the slope of the aggregate expenditure (AE) curve is

What is the value of the MPC if $66 out of every $100 increase in disposable income is consumed?

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

Disposable income (trillions of 2005 dollars) Consumption expenditure (trillions of 2005 dollars) 0.0 1.5 2.0 3.0 4.0 4.5 6.0 6.0 8.0 7.5 -The above table has data from the nation of Atlantica.Based on these data, when disposable income equals 8.0 there is

An increase in expected future disposable income consumption expenditure and .

The expenditure 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?

Explain the relationship between real GDP and aggregate planned expenditure, AE.What change to inventories takes place when the two are not equal?

What is the consumption function? What factor leads to a movement along the consumption function?

-In the figure above, when disposable income equals $8 trillion,

Getting Started

The Usand 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

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 14: Aggregate Expenditure Multiplier

The figure above shows three different consumption functions for a nation. -Which of the following events could result in the consumption function shifting from CF₀ to CF₂?

The slope of the consumption function is

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 new level of real GDP is

-The above table contains information about the nation of Syldavia.There are no income taxes or imports in this nation.When real GDP is $15 billion, firms' inventories experience an unplanned

The value of the expenditure multiplier changes if the ________ changes. i. marginal tax rate Ii) marginal propensity to import Iii) marginal propensity to consume

The fraction of a change in disposable income that is spent on consumption is the

The multiplier means that an increase in investment results in ________ aggregate expenditure that is ________ the increase in investment.

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

The components of aggregate expenditure that change when real GDP changes are known as

If the expenditure multiplier is 5, the slope of the aggregate expenditure (AE) curve is

What is the value of the MPC if $66 out of every $100 increase in disposable income is consumed?

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

Disposable income (trillions of 2005 dollars) Consumption expenditure (trillions of 2005 dollars) 0.0 1.5 2.0 3.0 4.0 4.5 6.0 6.0 8.0 7.5 -The above table has data from the nation of Atlantica.Based on these data, when disposable income equals 8.0 there is

An increase in expected future disposable income ________ consumption expenditure and ________.

The expenditure 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?

Explain the relationship between real GDP and aggregate planned expenditure, AE.What change to inventories takes place when the two are not equal?

What is the consumption function? What factor leads to a movement along the consumption function?

-In the figure above, when disposable income equals $8 trillion,

Getting Started

The Usand 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

Potential Gdp and the Natural Unemployment Rate

Economic Growth

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

The multiplier means that an increase in investment results in aggregate expenditure that is the increase in investment.

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

An increase in expected future disposable income consumption expenditure and .