Exam 23: Aggregate Expenditure and Output in the Short Run

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?

Net exports usually ________ when the U.S. economy is in a recession and ________ when the U.S. economy is expanding.

If an increase in autonomous consumption spending of $25 million results in a $100 million increase in equilibrium real GDP, then

If firms are more optimistic that future profits will rise and remain strong for the next few years, then

________ describes the relationship between consumption spending and disposable income.

The multiplier is calculated as the

The marginal propensity to consume is defined as

Table 23-13 -Refer to Table 23-13. Using the table above, answer the following questions. The numbers in the table are in billions of dollars. a. What is the equilibrium level of real GDP? b. What is the MPC? c. If investment spending declines by $50 billion, what will happen to equilibrium GDP?

If inflation in the United States is lower than inflation in other countries, what will be the effect on net exports for the United States?

Consumption spending is $5 million, planned investment spending is $8 million, actual investment spending is $8 million, government purchases are $10 million, and net export spending is $2 million. Based on this information, which of the following is true?

Disposable income is defined as

The Apple iPhone is sold in a box labeled "Made in China," but a study by economists at the Asian Development Bank found that the actual percentage of the price of the iPhone accounted for by the only work done in China, which is assembly, is

If the marginal propensity to save is 0.35, the multiplier is 2.86.

Goods that have been produced but not yet sold are referred to as

John Maynard Keynes argued that if many households decide at the same time to increase saving and reduce spending,

Aggregate expenditure includes consumption spending, unplanned investment spending, government purchases, and net exports.

Which of the following is not a component of aggregate expenditure?

During the Great Depression, economists first began studying the relationship between

Decreases in the price level will

Which of the following is not one of the four main categories of spending identified by John Maynard Keynes?