Question 1

In the Keynesian cross diagram, the vertical intercept of the expenditure line equals ________ and the slope of the expenditure line equals ________.

Accepted Answer

A) induced expenditures; autonomous expenditures 
B) autonomous expenditures; induced expenditures 
C) planned spending; unplanned spending 
D) autonomous expenditures; the mpc 
A) induced expenditures; autonomous expenditures 
B) autonomous expenditures; induced expenditures 
C) planned spending; unplanned spending 
D) autonomous expenditures; the mpc

Question 2

In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. The vertical intercept of the expenditure line is:

Accepted Answer

A) 0.25. 
B) 0.75. 
C) 290. 
D) 320. 
A) 0.25. 
B) 0.75. 
C) 290. 
D) 320.

Question 3

In the short-run Keynesian model, if the mpc equals 0.8, then to increase planned aggregate spending by $20 billion at any output level, government spending must be increased by ________ or net taxes must be decreased by ________.

Accepted Answer

A) $20 billion; $20 billion 
B) more than $20 billion; more than $20 billion 
C) less than $20 billion; less than $20 billion 
D) $20 billion; more than $20 billion 
A) $20 billion; $20 billion 
B) more than $20 billion; more than $20 billion 
C) less than $20 billion; less than $20 billion 
D) $20 billion; more than $20 billion

Question 4

In the basic Keynesian model all of the following are true EXCEPT:

Accepted Answer

A) planned consumption always equals actual consumption. 
B) planned investment always equals actual investment. 
C) planned government spending always equals actual government spending. 
D) planned net exports always equal actual net exports. 
A) planned consumption always equals actual consumption. 
B) planned investment always equals actual investment. 
C) planned government spending always equals actual government spending. 
D) planned net exports always equal actual net exports.

Question 5

If consumption increases by $9 when disposable income increases by $10, the marginal propensity to consume (mpc)equals:

Accepted Answer

A) 0.1. 
B) 0.9. 
C) 1.0. 
D) 9.0. 
A) 0.1. 
B) 0.9. 
C) 1.0. 
D) 9.0.

Question 6

When housing prices increase, household wealth ________, and consumption ________.

Accepted Answer

A) increases; increases 
B) increases; decreases 
C) decreases; decreases 
D) decreases; increases 
A) increases; increases 
B) increases; decreases 
C) decreases; decreases 
D) decreases; increases

In the Keynesian cross diagram, the vertical intercept of the expenditure line equals and the slope of the expenditure line equals .

In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. The vertical intercept of the expenditure line is:

In the short-run Keynesian model, if the mpc equals 0.8, then to increase planned aggregate spending by $20 billion at any output level, government spending must be increased by or net taxes must be decreased by .

In the basic Keynesian model all of the following are true EXCEPT:

If consumption increases by $9 when disposable income increases by $10, the marginal propensity to consume (mpc)equals:

When housing prices increase, household wealth , and consumption .

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

An Introduction to Behavioral Economics

Externalities, Property Rights, and the Environment

The Economics of Information

Labor Markets, Poverty, and Income Distribution

Public Goods and Tax Policy

International Trade and Trade Policy

Macroeconomics: The Birds Eye View of the Economy

Measuring Economic Activity: GDP and Unemployment

Measuring the Price Level and Inflation

Economic Growth, Productivity, and Living Standards

The Labor Market: Workers, Wages, and Unemployment

Saving and Capital Formation

Money Prices and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economic Fluctuations: An Introduction

Stabilizing the Economy: The Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

Exchange Rates and the Open Economy

Filters

Exam 25: Spending and Output in the Short Run

In the Keynesian cross diagram, the vertical intercept of the expenditure line equals ________ and the slope of the expenditure line equals ________.

In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. The vertical intercept of the expenditure line is:

In the short-run Keynesian model, if the mpc equals 0.8, then to increase planned aggregate spending by $20 billion at any output level, government spending must be increased by ________ or net taxes must be decreased by ________.

In the basic Keynesian model all of the following are true EXCEPT:

If consumption increases by $9 when disposable income increases by $10, the marginal propensity to consume (mpc)equals:

When housing prices increase, household wealth ________, and consumption ________.

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

An Introduction to Behavioral Economics

Externalities, Property Rights, and the Environment

The Economics of Information

Labor Markets, Poverty, and Income Distribution

Public Goods and Tax Policy

International Trade and Trade Policy

Macroeconomics: The Birds Eye View of the Economy

Measuring Economic Activity: GDP and Unemployment

Measuring the Price Level and Inflation

Economic Growth, Productivity, and Living Standards

The Labor Market: Workers, Wages, and Unemployment

Saving and Capital Formation

Money Prices and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economic Fluctuations: An Introduction

Stabilizing the Economy: The Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

Exchange Rates and the Open Economy

Filters

In the Keynesian cross diagram, the vertical intercept of the expenditure line equals and the slope of the expenditure line equals .

In the short-run Keynesian model, if the mpc equals 0.8, then to increase planned aggregate spending by $20 billion at any output level, government spending must be increased by or net taxes must be decreased by .

When housing prices increase, household wealth , and consumption .