Exam 12: Consumption, real GDP, and the Multiplier

If initial equilibrium real Gross Domestic Product (GDP)is $400 billion,MPC = 0.9,and autonomous investment increases $40 billion,equilibrium real Gross Domestic Product (GDP)will be

All of the following will cause an outward shift of the investment function EXCEPT

The consumption function shows the relationship

-Refer to the above table.If real GDP is $12 trillion,total planned expenditures and unplanned inventory changes are respectively

The multiplier equals

Suppose there is a $200 billion increase in government spending.We know that this increase in government spending will cause which of the following to occur?

Which of the following is a simplifying assumption associated with the short-run Keynesian model of equilibrium real Gross Domestic Product (GDP)determination?

-Refer to the above table.The table gives the combinations of real disposable income and real consumption for a college student for a year.What does planned real saving equal when real disposable income equals $12,000?

In the Keynesian model,whenever planned investment is greater than planned saving,

If the level of consumption is $100 billion and disposable income is $125 billion,then the

The slope of the consumption function is the

-In the above figure,the equilibrium level of real GDP per year is

Which one of the following is true?

At the point at which planned real consumption spending is equal to real disposable income

If the marginal propensity to consume (MPC)is 0.8,the spending multiplier will be

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

-Refer to the above figure.If real Gross Domestic Product (GDP)is $2 trillion,then

The equation is the

-According to the above table,if real Gross Domestic Product (GDP)equals $30,000,what is the average propensity to consume?

Autonomous consumption