\(\begin{array}{l} \text { Schedule for Real GDP, Net Taxes and Government Purchases (Trillions of Dollars) }\\ \begin{array}{ccccccccc} \hline \begin{array}{c} \text { Real } \\ \text { GDP } \end{array} & \begin{array}{c} \text { Net } \\ \text { taxes } \end{array} & \begin{array}{c} \text { Disposable } \\ \text { income } \\ (Y) \end{array} & \begin{array}{c} \text { Consumption } \\ (N T) \end{array} & \begin{array}{c} \text { Saving } \\ (Y-N T) \end{array} & \begin{array}{c} \text { Planned } \\ \text { investment } \\ (S) \end{array} & \begin{array}{c} \text { Net } \\ \text { exports } \\ (N X) \end{array} & \begin{array}{c} \text { Government } \\ \text { purchases } \\ (G) \end{array} & \begin{array}{c} \text { Planned } \\ \text { aggregate } \\ \text { expenditure } \\ (C+I+N X+G) \end{array} \\ \hline 3.0 & 0.9 & 2.1 & 2.0 & 0.1 & 0.5 & -0.2 & 0.9 & 3.2 \\ 3.6 & 0.9 & 2.7 & 2.4 & 0.3 & 0.5 & -0.2 & 0.9 & 3.5 \\ 4.2 & 0.9 & 3.3 & 2.8 & 0.5 & 0.5 & -0.2 & 0.9 & 4.0 \\ 4.8 & 0.9 & 3.9 & 3.2 & 0.7 & 0.5 & -0.2 & 0.9 & 4.4 \\ 5.4 & 0.9 & 4.5 & 3.6 & 0.9 & 0.5 & -0.2 & 0.9 & 4.8 \\ \hline \end{array} \end{array}\) -Refer to the table in the exhibit.What is the marginal propensity to consume?

A) 5/6 B) 4/5 C) 3/4 D) 2/3 A) 5/6 B) 4/5 C) 3/4 D) 2/3

\(\begin{array}{l} \text { Schedule for Real GDP, Net Taxes and Government Purchases (Trillions of Dollars) }\\ \begin{array}{ccccccccc} \hline \begin{array}{c} \text { Real } \\ \text { GDP } \end{array} & \begin{array}{c} \text { Net } \\ \text { taxes } \end{array} & \begin{array}{c} \text { Disposable } \\ \text { income } \\ (Y) \end{array} & \begin{array}{c} \text { Consumption } \\ (N T) \end{array} & \begin{array}{c} \text { Saving } \\ (Y-N T) \end{array} & \begin{array}{c} \text { Planned } \\ \text { investment } \\ (S) \end{array} & \begin{array}{c} \text { Net } \\ \text { exports } \\ (N X) \end{array} & \begin{array}{c} \text { Government } \\ \text { purchases } \\ (G) \end{array} & \begin{array}{c} \text { Planned } \\ \text { aggregate } \\ \text { expenditure } \\ (C+I+N X+G) \end{array} \\ \hline 3.0 & 0.9 & 2.1 & 2.0 & 0.1 & 0.5 & -0.2 & 0.9 & 3.2 \\ 3.6 & 0.9 & 2.7 & 2.4 & 0.3 & 0.5 & -0.2 & 0.9 & 3.5 \\ 4.2 & 0.9 & 3.3 & 2.8 & 0.5 & 0.5 & -0.2 & 0.9 & 4.0 \\ 4.8 & 0.9 & 3.9 & 3.2 & 0.7 & 0.5 & -0.2 & 0.9 & 4.4 \\ 5.4 & 0.9 & 4.5 & 3.6 & 0.9 & 0.5 & -0.2 & 0.9 & 4.8 \\ \hline \end{array} \end{array}\) -Refer to the table in the exhibit.What is the relationship between exports and imports?

A) Imports exceed exports by $200 billion. B) Exports exceed imports by $200 billion. C) Imports are equal to exports. D) Exports plus imports equals $200 billion. A) Imports exceed exports by $200 billion. B) Exports exceed imports by $200 billion. C) Imports are equal to exports. D) Exports plus imports equals $200 billion.

Exam 10: Aggregate Expenditure and Aggregate Demand

On the aggregate expenditure graph, suppose autonomous investment decreases by $10 billion.What will be the effect on the aggregate expenditure line?

(Multiple Choice)

4.9/5

(34)

Question 101

Suppose the marginal propensity to consume is 4/5.What is the simple multiplier?

(Multiple Choice)

4.8/5

(32)

Question 102

Suppose investment increases by $100 and, as a result, GDP ultimately increases by $200.What does the multiplier equal?

(Multiple Choice)

4.9/5

(31)

Question 103

-Refer to the table in the exhibit.Which of the following groups is considered autonomous with respect to income?

(Multiple Choice)

4.7/5

(35)

Question 104

Suppose the simple multiplier is 8.What is the marginal propensity to consume?

(Multiple Choice)

5.0/5

(39)

Question 105

Schedule for Real GDP, Net Taxes and Government Purchases (Trillions of Dollars) Real GDP Net taxes Disposable income (Y) Consumption (NT) Saving (Y-NT) Planned investment (S) Net exports (NX) Government purchases (G) Planned aggregate expenditure (C+I+NX+G) 3.0 0.9 2.1 2.0 0.1 0.5 -0.2 0.9 3.2 3.6 0.9 2.7 2.4 0.3 0.5 -0.2 0.9 3.5 4.2 0.9 3.3 2.8 0.5 0.5 -0.2 0.9 4.0 4.8 0.9 3.9 3.2 0.7 0.5 -0.2 0.9 4.4 5.4 0.9 4.5 3.6 0.9 0.5 -0.2 0.9 4.8 -Refer to the table in the exhibit.What is the marginal propensity to consume?

(Multiple Choice)

4.8/5

(23)

Question 106

Schedule for Real GDP, Net Taxes and Government Purchases (Trillions of Dollars) Real GDP Net taxes Disposable income (Y) Consumption (NT) Saving (Y-NT) Planned investment (S) Net exports (NX) Government purchases (G) Planned aggregate expenditure (C+I+NX+G) 3.0 0.9 2.1 2.0 0.1 0.5 -0.2 0.9 3.2 3.6 0.9 2.7 2.4 0.3 0.5 -0.2 0.9 3.5 4.2 0.9 3.3 2.8 0.5 0.5 -0.2 0.9 4.0 4.8 0.9 3.9 3.2 0.7 0.5 -0.2 0.9 4.4 5.4 0.9 4.5 3.6 0.9 0.5 -0.2 0.9 4.8 -Refer to the table in the exhibit.What is the relationship between exports and imports?

(Multiple Choice)

4.8/5

(28)

Question 107

Other things constant, how would a larger marginal propensity to save affect the consumption function?

(Multiple Choice)

4.9/5

(47)

Question 108

How will an increase in the price level affect the aggregate demand curve?

(Multiple Choice)

4.8/5

(36)

Question 109

Suppose the spending multiplier is greater than 1.0.Which of the following will be the result of a $200 billion increase in autonomous investment?

(Multiple Choice)

4.7/5

(26)

Question 110

Suppose the marginal propensity to save is 1/8.What is the value of the simple multiplier?

(Multiple Choice)

4.7/5

(30)

Question 111

Other things constant, how would a smaller marginal propensity to save affect the consumption function?

(Multiple Choice)

4.8/5

(31)

Question 112

Other things constant, how would a smaller marginal propensity to save affect the saving function?

(Multiple Choice)

4.9/5

(40)

Question 113

What is illustrated by the distance between the aggregate expenditure line and the 45-degree line at each level of real GDP?

(Multiple Choice)

4.8/5

(29)

Question 114

Suppose households save $30 billion more at each level of income, and the MPC = 0.9.How will the aggregate expenditure line be affected?

(Multiple Choice)

4.9/5

(35)

Question 115

Suppose the price level increases.How will the aggregate expenditure line be affected?

(Multiple Choice)

4.9/5

(31)

Question 116

Suppose current real GDP is greater than planned aggregate expenditure.Which of the following best describes how inventories of goods and services are affected?

(Multiple Choice)

4.8/5

(28)

Question 117

At the equilibrium level of real GDP, what does unplanned inventory adjustment equal?

(Multiple Choice)

4.9/5

(27)

Question 118

Other things constant, how would a smaller marginal propensity to save affect the marginal propensity to consume?

(Multiple Choice)

4.9/5

(34)

Question 119

Suppose that the multiplier is 4, autonomous investment rises by $50 billion, and autonomous consumption falls by $50 billion at the same time.What will be the effect on equilibrium GDP?

(Multiple Choice)

4.8/5

(27)

Question 120

On the aggregate expenditure graph, suppose autonomous investment decreases by $10 billion.What will be the effect on the aggregate expenditure line?

Suppose the marginal propensity to consume is 4/5.What is the simple multiplier?

Suppose investment increases by $100 and, as a result, GDP ultimately increases by $200.What does the multiplier equal?

-Refer to the table in the exhibit.Which of the following groups is considered autonomous with respect to income?

Suppose the simple multiplier is 8.What is the marginal propensity to consume?

Other things constant, how would a larger marginal propensity to save affect the consumption function?

How will an increase in the price level affect the aggregate demand curve?

Suppose the spending multiplier is greater than 1.0.Which of the following will be the result of a $200 billion increase in autonomous investment?

Suppose the marginal propensity to save is 1/8.What is the value of the simple multiplier?

Other things constant, how would a smaller marginal propensity to save affect the consumption function?

Other things constant, how would a smaller marginal propensity to save affect the saving function?

What is illustrated by the distance between the aggregate expenditure line and the 45-degree line at each level of real GDP?

Suppose households save $30 billion more at each level of income, and the MPC = 0.9.How will the aggregate expenditure line be affected?

Suppose the price level increases.How will the aggregate expenditure line be affected?

Suppose current real GDP is greater than planned aggregate expenditure.Which of the following best describes how inventories of goods and services are affected?

At the equilibrium level of real GDP, what does unplanned inventory adjustment equal?

Other things constant, how would a smaller marginal propensity to save affect the marginal propensity to consume?

Suppose that the multiplier is 4, autonomous investment rises by $50 billion, and autonomous consumption falls by $50 billion at the same time.What will be the effect on equilibrium GDP?

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, Supply, and Markets

Algebraic Approach to Demand, Supply, and Equilibrium

Introduction to Macroeconomics

Tracking the Canadian Economy

Unemployment and Inflation

Productivity and Growth

Aggregate Supply

Fiscal Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy in an Open Economy

Macro Policy Debate: Active or Passive

International Finance

International Trade

Economic Development

Understanding Graphs

Filters