Exam 11: Aggregate Expenditure and Aggregate Demand

If the marginal propensity to consume in your classmate's nation is 3/5 and the marginal propensity to save in your country is 1/10, which of the following must be true?

Which of the following best describes the multiplier?

If the simple multiplier is 10, the marginal propensity to save is

Which of the following is not included in the aggregate expenditure line?

A decrease in the price level will

In the income-expenditure framework, if planned aggregate expenditures are greater than real GDP,

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

Which of the following would cause a leftward shift of the aggregate demand curve?

An increase in the price level will

The aggregate expenditure model is

Which of the following would result from a decrease in autonomous saving?

Job losses soon after the September 11 attacks could be viewed as just part of the first round of reduced aggregate expenditure. The second round occurred when a.government starting spending more on national security b.people who lost jobs or feared they would lose their jobs started spending less c.businesses invested in back-up data centers in case their main computers were attacked d.consumers went back to shopping at the urging of government officials e.All of the answers are correct

Movement along the aggregate expenditure curve is caused by a change in the level of income.

Which of the following is assumed constant along the aggregate expenditure line?

To simplify the aggregate expenditure model, we assume that there is no

The simple multiplier equals

Which of the following would cause a rightward shift of the aggregate demand curve?

Exhibit 10-2 -In Exhibit 10-2, the equilibrium level of GDP is

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

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