Data on after-tax income and consumption spending for the Adam Smith family are given below: $\begin{array}{cc} \underline { \text { After-tax Income }} & \underline { \text { Consumption Spending }} \\ \$ 9,000 & \$ 18,100 \\ \$ 14,000 & \$ 22,600 \\ \$ 19,000 & \$ 27,100 \\ \$ 24,000 & \$ 31,600 \end{array}$ Based on these data,the Adam Smith family has a marginal propensity to consume of:

A) 0.9. B) 0.8. C) 0.75. D) 0.6. A) 0.9. B) 0.8. C) 0.75. D) 0.6.

Exam 22: Spending, Output, and Fiscal Policy

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In Econland autonomous consumption equals 700,the marginal propensity to consume equals 0.80,net taxes are fixed at 50,planned investment is fixed at 100,government purchases are fixed at 100,and net exports are fixed at 40.The vertical intercept of the Expenditure Line is:

(Multiple Choice)

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Question 121

Government policy actions intended to increase planned spending and output are called ______ policies.

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Question 122

Changes in government purchases affect planned spending:

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Question 123

Induced expenditure is the portion of planned aggregate expenditure that:

(Multiple Choice)

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Question 124

C + I^p + G + NX equals:

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Question 125

Regarding the fiscal policy responses to the 2007-2009 recession,the Congressional Budget Office (CBO)found that:

(Multiple Choice)

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Question 126

A fiscal policy action to close a recessionary gap is to:

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Question 127

Data on after-tax income and consumption spending for the Adam Smith family are given below: \ 9,000 \ 18,100 \ 14,000 \ 22,600 \ 19,000 \ 27,100 \ 24,000 \ 31,600 Based on these data,the Adam Smith family has a marginal propensity to consume of:

(Multiple Choice)

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Question 128

In the short-run Keynesian model where the marginal propensity to consume is 0.75,to offset a recessionary gap resulting from a $1 billion decrease in autonomous consumption,taxes must be:

(Multiple Choice)

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Question 129

If planned aggregate expenditure (PAE)in an economy equals 2,000 + 0.8Y and potential output (Y*)equals 11,000,then this economy has:

(Multiple Choice)

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Question 130

In the Keynesian cross diagram,the line relates planned aggregate expenditure to output and the line represents the condition that planned aggregate expenditure equals short-run equilibrium output.

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Question 131

If firms sell less than expected,actual investment increases because _____,which is counted as investment.

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Question 132

In Econland autonomous consumption equals 700,the marginal propensity to consume equals 0.80,net taxes are fixed at 50,planned investment is fixed at 100,government purchases are fixed at 100,and net exports are fixed at 40.Induced expenditure equals:

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Question 133

Showing 121 - 133 of 133

In Econland autonomous consumption equals 700,the marginal propensity to consume equals 0.80,net taxes are fixed at 50,planned investment is fixed at 100,government purchases are fixed at 100,and net exports are fixed at 40.The vertical intercept of the Expenditure Line is:

Government policy actions intended to increase planned spending and output are called ______ policies.

Changes in government purchases affect planned spending:

Induced expenditure is the portion of planned aggregate expenditure that:

C + I^p + G + NX equals:

Regarding the fiscal policy responses to the 2007-2009 recession,the Congressional Budget Office (CBO)found that:

A fiscal policy action to close a recessionary gap is to:

Data on after-tax income and consumption spending for the Adam Smith family are given below: \ 9,000 \ 18,100 \ 14,000 \ 22,600 \ 19,000 \ 27,100 \ 24,000 \ 31,600 Based on these data,the Adam Smith family has a marginal propensity to consume of:

In the short-run Keynesian model where the marginal propensity to consume is 0.75,to offset a recessionary gap resulting from a $1 billion decrease in autonomous consumption,taxes must be:

If planned aggregate expenditure (PAE)in an economy equals 2,000 + 0.8Y and potential output (Y*)equals 11,000,then this economy has:

In the Keynesian cross diagram,the line relates planned aggregate expenditure to output and the line represents the condition that planned aggregate expenditure equals short-run equilibrium output.

If firms sell less than expected,actual investment increases because _____,which is counted as investment.

In Econland autonomous consumption equals 700,the marginal propensity to consume equals 0.80,net taxes are fixed at 50,planned investment is fixed at 100,government purchases are fixed at 100,and net exports are fixed at 40.Induced expenditure equals:

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

Externalities and Property Rights

The Economics of Information

Labor Markets, Poverty, and Income Distribution

The Environment, Health, and Safety

Public Goods and Tax Policy

Spending, Income, and GDP

Inflation and the Price Level

Wages and Unemployment

Economic Growth

Saving, Capital Formation, and Financial Markets

Money, Prices, and the Financial System

Short-Term Economic Fluctuations

Monetary Policy and the Federal Reserve

Aggregate Demand, Aggregate Supply, and Business Cycles

Macroeconomic Policy

Exchange Rates, International Trade, and Capital Flows

Filters

Exam 22: Spending, Output, and Fiscal Policy

In Econland autonomous consumption equals 700,the marginal propensity to consume equals 0.80,net taxes are fixed at 50,planned investment is fixed at 100,government purchases are fixed at 100,and net exports are fixed at 40.The vertical intercept of the Expenditure Line is:

Government policy actions intended to increase planned spending and output are called ______ policies.

Changes in government purchases affect planned spending:

Induced expenditure is the portion of planned aggregate expenditure that:

C + Ip + G + NX equals:

Regarding the fiscal policy responses to the 2007-2009 recession,the Congressional Budget Office (CBO)found that:

A fiscal policy action to close a recessionary gap is to:

Data on after-tax income and consumption spending for the Adam Smith family are given below: \ 9,000 \ 18,100 \ 14,000 \ 22,600 \ 19,000 \ 27,100 \ 24,000 \ 31,600 Based on these data,the Adam Smith family has a marginal propensity to consume of:

In the short-run Keynesian model where the marginal propensity to consume is 0.75,to offset a recessionary gap resulting from a $1 billion decrease in autonomous consumption,taxes must be:

If planned aggregate expenditure (PAE)in an economy equals 2,000 + 0.8Y and potential output (Y*)equals 11,000,then this economy has:

In the Keynesian cross diagram,the ______ line relates planned aggregate expenditure to output and the ______ line represents the condition that planned aggregate expenditure equals short-run equilibrium output.

If firms sell less than expected,actual investment increases because _____,which is counted as investment.

In Econland autonomous consumption equals 700,the marginal propensity to consume equals 0.80,net taxes are fixed at 50,planned investment is fixed at 100,government purchases are fixed at 100,and net exports are fixed at 40.Induced expenditure equals:

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

Externalities and Property Rights

The Economics of Information

Labor Markets, Poverty, and Income Distribution

The Environment, Health, and Safety

Public Goods and Tax Policy

Spending, Income, and GDP

Inflation and the Price Level

Wages and Unemployment

Economic Growth

Saving, Capital Formation, and Financial Markets

Money, Prices, and the Financial System

Short-Term Economic Fluctuations

Monetary Policy and the Federal Reserve

Aggregate Demand, Aggregate Supply, and Business Cycles

Macroeconomic Policy

Exchange Rates, International Trade, and Capital Flows

Filters

C + I^p + G + NX equals:

In the Keynesian cross diagram,the line relates planned aggregate expenditure to output and the line represents the condition that planned aggregate expenditure equals short-run equilibrium output.