Exam 11: Consumption, Real GDP, and the Multiplier

-In the above figure, when real disposable income is less than 600, then

The investment function will shift when there is a change in

At the point at which planned real consumption spending is equal to real disposable income

If the marginal propensity to consume (MPC)is 0.8, the multiplier will be

-In the above table, dissaving occurs at every level of income below

-In the above figure, if real GDP is $1 trillion, there is

Consider a closed economy without a government and without international trade. What will be TRUE when this economy is in equilibrium?

-According to the above table, the value of the MPC is

-Refer to the above figure. The equilibrium level of real Gross Domestic Product (GDP)is

Ignoring the government and foreign sectors, there is an unplanned decrease in inventories of $200 billion at the current level of real national income of $12 trillion. From this information, we know that

The consumption function is the relationship between

Suppose autonomous consumption decreases. This reduction in autonomous consumption will cause which of the following to occur?

-Refer to the above figure. The figure represents the consumption function for a consumer. Point B represents

Which of the following would be expected to shift the consumption function up?

-Use the above table. Dissaving occurs up to a disposable income level of

Along a linear consumption function,

-In the above figure, when disposable income is greater than 600

The marginal propensity to save (MPS)is

Real planned investment spending is inversely related to

-Consider the above figure. The equation for the consumption function is