Exam 12: Consumption, real GDP, and the Multiplier

-In the above table,dissaving occurs at every level of income below

-In the above figure,what is the equilibrium level of real GDP with government and the foreign sector?

-In the above diagram,what happens if the real GDP is $3 trillion? $5 trillion? $7 trillion? What is the equilibrium level of real GDP? Why?

-Refer to the above figure.The figure represents the saving function for the consumer.Point C represents

-Use the above table.The MPS is

The relationship between planned real consumption expenditures of households and their current level of real disposable income is

In the Keynesian model,whenever planned saving exceeds planned investment,

Of the relationships below,which is the least stable?

-In the above table,saving equals zero when real disposable income equals

The planned investment function will shift downward if

Compared to consumption spending,investment historically has tended to be

Investment is

Autonomous consumption

When the economy is operating at the equilibrium level of GDP,we know that

If the marginal propensity to save (MPS)is 0.1,the multiplier will be

If the multiplier in the economy is 3,the marginal propensity to save (MPS)must be

-In the above figure,point E represents the level of real GDP at which planned saving equals planned investment.At point C,

-In the above table,saving is positive when real disposable income is greater than

The relationship between real consumption spending and real disposable income

Changes in business inventories are known as