Exam 12: Consumption, Real GDP, and the Multiplier

-Refer to the above figure. Line BCD is called

A higher level of real Gross Domestic Product (GDP) will result if

Which of the following is true?

The income-expenditure model of real GDP determination is due to the work of

If the marginal propensity to save (MPS) increases, the multiplier

The ratio of the change in consumption to the change in disposable income is the

How does an increase in the price level affect the position of the C + I + G + X curve and in turn the equilibrium level of real GDP?

The stock of assets owned by a person, household, firm or nation is

When disposable income equals consumption expenditures, then

How is investment defined as an economic concept?

It is conceivable that the APC, APS, MPC, and MPS could simultaneously be

-In the above figure, what is the equilibrium level of real consumption spending?

All of the following will cause an outward shift of the investment function EXCEPT

-Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What does planned real saving equal when real disposable income equals $12,000?

A firm will invest in a project if

In Keynesian analysis, if investment remains constant when income changes, the investment is called

The relationship between planned consumption and real disposable income is referred to as

-Refer to the above figure. The figure represents the consumption function for a consumer. The distance between A and B represents

In the Keynesian model, whenever planned saving is less than planned investment,

Which of the following would increase the level of planned real investment?