Exam 12: Consumption, real GDP, and the Multiplier

According to Keynes,planned consumption

What is the result when real planned saving exceeds real planned investment spending?

If society wants aggregate demand to increase without changes in the price level,then there must be

-Refer to the above figure.Line BCD is called

Which of the following will NOT lead to a shift in the investment function?

Along the 45° reference line

The break-even point on the consumption function represents the point where

-Use the above table.Dissaving occurs up to a disposable income level of

The average propensity to consume (APC)is

According to the Keynesian model,what are the two components of consumption spending? What determines how consumption changes when real disposable income changes? Explain.

-In the above table,the level of autonomous consumption is

-In the above table,the marginal propensity to save is ________.

What determines investment in the Keynesian framework? How is investment related to real Gross Domestic Product (GDP)?

A firm will invest in a project if

-Refer to the above table.When real GDP equals $10 trillion,

-In the above figure,at an income level of Y1 and planned expenditures of (C + I)1,the level of autonomous investment is

The marginal propensity to consume (MPC)can best be defined as that fraction of

-Refer to the above table.The equilibrium real GDP is

Suppose that when disposable income decreases by $2,000,consumption spending increases by $1500.Given this information,we know that the marginal propensity to consume (MPC)is

If businesses expect the economic activity to expand,