Exam 12: Consumption, Real GDP, and the Multiplier

-In the above figure, what is the equilibrium level of real GDP with government and the foreign sector?

-In the above figure, the sum of real planned investment spending, government expenditures, and net export spending is equal to

-In the above figure, at the equilibrium level of real GDP, there is

When consumption spending is greater than disposable income, we know with certainty that we have

-Refer to the above table. The equilibrium real GDP is

-Consider the above figure. Autonomous consumption, in this scenario, is equal to

Which of the following changes will shift the consumption function upward?

The multiplier equals

All of the following will shift the consumption function EXCEPT

The ratio of the change in the equilibrium level of real GDP to the change in autonomous real expenditures is the

When real GDP is in equilibrium with no government and no international trade,

Autonomous consumption

If the MPS is one-third, a $100 increase in net exports will

According to Keynes, the primary determinant of a person's saving is NOT

-Refer to the above figure. The marginal propensity to consume and the marginal propensity to save

The multiplier is

-Refer to the above figure. Line ABC is called

The marginal propensity to consume (MPC) can best be defined as that fraction of

Which of the following would cause a leftward shift in the investment function?

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