Question 1

-In the above figure, point E represents the level of real GDP at which planned saving equals planned investment. At point C

Accepted Answer

A) unplanned inventories increase. 
B) changes in inventories cannot be determined. 
C) unused industrial capacity exists in the economy. 
D) unplanned inventories decrease. 
A) unplanned inventories increase. 
B) changes in inventories cannot be determined. 
C) unused industrial capacity exists in the economy. 
D) unplanned inventories decrease.

Question 2

Dissaving occurs when

Accepted Answer

A) households deposit unusually large amounts of money into their savings account. 
B) households reduce their planned monthly saving. 
C) consumption spending exceeds real disposable income. 
D) the average saving rate for the nation unexpectedly falls. 
A) households deposit unusually large amounts of money into their savings account. 
B) households reduce their planned monthly saving. 
C) consumption spending exceeds real disposable income. 
D) the average saving rate for the nation unexpectedly falls.

Question 3

Nonconsumable goods that firms use to make other goods are

Accepted Answer

A) consumption goods. 
B) capital goods. 
C) dissaving. 
D) the MPC. 
A) consumption goods. 
B) capital goods. 
C) dissaving. 
D) the MPC.

Question 4

The average propensity to consume is the

Accepted Answer

A) percentage of total disposable income consumed. 
B) rate at which real disposable income changes as planned consumption changes. 
C) ratio of changes in planned consumption to changes in real disposable income. 
D) slope of the consumption function. 
A) percentage of total disposable income consumed. 
B) rate at which real disposable income changes as planned consumption changes. 
C) ratio of changes in planned consumption to changes in real disposable income. 
D) slope of the consumption function.

Question 5

-In the above table, the marginal propensity to consume (MPC)is

Accepted Answer

A) 0.9. 
B) 0.75. 
C) 0.8. 
D) 0.85. 
A) 0.9. 
B) 0.75. 
C) 0.8. 
D) 0.85.

-In the above figure, point E represents the level of real GDP at which planned saving equals planned investment. At point C

Dissaving occurs when

Nonconsumable goods that firms use to make other goods are

The average propensity to consume is the

-In the above table, the marginal propensity to consume (MPC)is

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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Exam 11: Consumption, Real GDP, and the Multiplier

-In the above figure, point E represents the level of real GDP at which planned saving equals planned investment. At point C

Dissaving occurs when

Nonconsumable goods that firms use to make other goods are

The average propensity to consume is the

-In the above table, the marginal propensity to consume (MPC)is

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters