Exam 8: Aggregate Expenditure and Output in the Short Run

In 2007-2008, exports from Canada to the United States fell dramatically.Based on the multiplier effect, we would expect

All of the following are one of the four main categories of spending identified by John Maynard Keynes except

Table 8.10 -Refer to Table 8.10.Using the table above, calculate the unplanned change in inventories for each level of GDP, and explain what will happen to GDP?

What are the four categories of aggregate expenditure?

Canadian net export spending rises when

Use a 45-degree diagram to illustrate macroeconomic equilibrium.Make sure your diagram shows the aggregate expenditure function.Include in your diagram a point where aggregate expenditure is greater than GDP and a point where aggregate expenditure is less than GDP.

Ceteris paribus, how does an expansion in Canada affect Canadian net exports?

An increase in the price level in Canada will have what effect on the aggregate expenditure line?

What is the main reason for changes in GDP in the short run?

C = 3,600 + (MPC)Y I = 1,200 G = 1,400 NX = -200 If the equilibrium level of GDP is $30,000, using the equations for C, I, G, and NX shown above, find the value of the marginal propensity to consume.

When net exports equal zero, the economy is in macroeconomic equilibrium.

The ________ model focuses on the relationship between total spending and real GDP in the short run, assuming the price level is constant.

Net exports usually ________ when the Canadian economy is in a recession and ________ when the Canadian economy is expanding, all else equal.

An increase in aggregate expenditure has what result on equilibrium GDP?

Equilibrium GDP is equal to

Which of the following is true?

Which of the following is a true statement about the multiplier?

An increase in the price level ________ real wealth, which causes consumption to ________.

The aggregate demand curve illustrates the relationship between ________ and the ________, holding constant all other factors that affect aggregate expenditure.

At each of the three points in the following graph, indicate whether planned aggregate expenditure is greater than, equal to, or less than GDP. Alt text for Question 47: For question 47, a graph comparing planned aggregate expenditure and GDP. Long description for Question 47: The x-axis is labelled, real GDP, Y (trillions of 2002 dollars).The y-axis is labelled, real aggregate expenditure, AE (trillions of 2002 dollars).Line Y = AE originates at the vertex and slopes up to the top right corner.Line AE1, begins a little less than half way along the x-axis and slopes up to the end of the x-axis.Both lines intersect at point K, approximately 3 quarters of the way along both lines.Point J is plotted a little less than half way along line AE1, to the left of point K.Point L is plotted close to the right end of line AE1, to the right of point K.