Exam 12: Consumption, Real GDP, and the Multiplier

Suppose the economy is at an equilibrium when C + I + G + X = $12 trillion. If the economy is currently at a real national income level of $14 trillion, then total planned real expenditures

At the break-even point for the consumption function

The part of consumption that does not depend upon the level of disposable income is

The consumption function is the relationship between

Marginal propensity to consume

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

If the marginal propensity to consume (MPC) is 0.8 and there is a desire to increase real GDP by $500 billion, then

Autonomous consumption is the level of consumption that is

The relationship between households' planned consumption expenditures and households' level of disposable real income is called

Government purchases

Investment is

In the Keynesian model, an increase in real autonomous spending results in a greater increase in real Gross Domestic Product (GDP) if

In the consumption function model, the 45-degree line represents where

Autonomous real investment spending is

The average propensity to consume is

Suppose equilibrium for an economy occurs when C + I + G + X = $14 trillion. If the real Gross Domestic Product (GDP) is $13 trillion, then unplanned inventories are

If the marginal propensity to save (MPS) is 0.1, the multiplier will be

The difference between "saving" and "savings" is that

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

The marginal propensity to consume is calculated by