Exam 10: Aggregate Expenditure and Aggregate Demand

Exhibit 10-4 -In Exhibit 10-4,assume the economy is in equilibrium with real GDP of $5 trillion dollars.If aggregate expenditure (AE)increases by $1 trillion,we would expect the economy's equilibrium real GDP to

The larger the marginal propensity to save,other things constant,

Anything that causes a movement along the aggregate expenditure curve will also cause a shift of the aggregate demand curve.

If autonomous investment expenditures decline because of higher interest rates

A decrease in the price level will have which of the following effects?

A fall in the price level will shift the aggregate expenditure curve

If the multiplier is 3,a $20 billion increase in autonomous consumption will cause a

On the aggregate expenditure graph,if autonomous investment increases by $20 billion,

If the marginal propensity to consume is 4/5,the value of the simple multiplier is

Exhibit 10-2 -In Exhibit 10-2,which group of the following is considered autonomous with respect to income?

On the aggregate expenditure graph,if autonomous investment decreases by $10 billion,

If people spend 2/3 of any extra income they receive,new autonomous spending of $10 causes equilibrium to increase by

If autonomous investment decreases by $60 billion,equilibrium real GDP demanded will

Exhibit 10-5 -According to the graph in Exhibit 10-5,if the price level decreases,the new equilibrium level of real GDP must be

Exhibit 10-2 -At the equilibrium level of GDP in Exhibit 10-2,saving equals

What is the effect of an increase in the price level?

A decrease in the price level will

The smaller the marginal propensity to save,other things constant,

If the price level decreases,

If the full employment level of income is $1200 billion and the present level of income is $1000 billion