Exam 12: Consumption, Real GDP, and the Multiplier

According to the consumption function, if the level of real disposable income increases, then

The multiplier is

In the Keynesian model, an increase in real autonomous spending results in a greater increase in real Gross Domestic Product (GDP) if

How much people plan to consume at various levels of disposable income is known as

Which of the following is a stock variable?

A lower price level causes the C + I + G + X curve to shift as a result of a change in all the following EXCEPT

All of the following shift the consumption function upward EXCEPT

The ratio of the change in the equilibrium level of real GDP to the change in autonomous real expenditures is the

Which of the following would be expected to shift the consumption function down?

Suppose the marginal propensity to consume is 0.75. What does this mean? What do we know about the marginal propensity to save? What do we know about the average propensity to consume?

Investment is

In the above figure, a change in autonomous consumption to 100 would cause the consumption function to

If an increase of $5 million in investment is associated with an increase of $20 million in real Gross Domestic Product (GDP), the multiplier is

-In the above figure, at an income level of Y3 and planned expenditures of (C + I)1

Saving equals

Which of the following is NOT included in the flow of investment spending that is part of total planned expenditures in the economy?

Suppose the economy is at an equilibrium when C + I + G + X = $12 trillion. If the economy is currently at a real national income level of $14 trillion, then total planned real expenditures

Dissaving occurs when

If the marginal propensity to save (MPS) is 0.5 and net exports falls by $10 million, then

Note: Amounts in billions. -Refer to the above table. When real GDP equals $11 billion