Exam 12: Aggregate Expenditure and Output in the Short Run

Consumption spending is $16 million,planned investment spending is $4 million,unplanned investment spending is $2 million,government purchases are $6 million,and net export spending is $1 million.What is aggregate expenditure?

________ is defined as national income + transfers - taxes.

Which of the following will raise consumer expenditures?

Given the equations for C,I,G,and NX below,what is the value of the marginal propensity to consume? C = 1,000 + 0.8Y I = 1,500 G =1,250 NX = 100

The National Restaurant Association states that the restaurant industry has an economic effect of more than $1.7 trillion annually in the United States,with every dollar spent in restaurants generating an estimated total of $2.05 in spending in the economy.This indicates that the spending multiplier for the restaurant industry is equal to

For all points above the 45 degree line,planned aggregate expenditure will be less than GDP.

If the economy is currently in equilibrium at a level of GDP that is above potential GDP,which of the following would move the economy back to potential GDP?

Consumption is $5 million,planned investment spending is $8 million,government purchases are $10 million,and net exports are equal to $2 million.If GDP during that same time period is equal to $23 million,what unplanned changes in inventories occurred?

If the marginal propensity to save is 0.1,then a $10 million decrease in disposable income will

Household wealth is defined as the value of a household's

The components of aggregate expenditure are

What are the five main determinants of consumption spending? Which of these is the most important?

If planned aggregate expenditure is greater than total production

Macroeconomic equilibrium can occur at any point on the 45 degree line.

If aggregate expenditure is less than GDP,how will the economy reach macroeconomic equilibrium?

On the 45 degree line-diagram,for points that lie above the 45 degree line

In a small economy in 2018,aggregate expenditure was $850 million while GDP that year was $800 million.Which of the following can explain the difference between aggregate expenditure and GDP that year?

Table 12-3 -Refer to Table 12-3.Given the consumption schedule in the table above,the marginal propensity to consume is

C = 2,800 + 0.9Y I = 750 G = 1,200 NX = 150 Given the equations for C,I,G,and NX above,what is the equilibrium level of GDP (Y)?

Given the equations for C,I,G,and NX below,what is the equilibrium level of GDP? C = 2,000 + 0.9Y I = 2,500 G = 3,000 NX = 400