Exam 12: Consumption, real GDP, and the Multiplier

Along the 45-degree reference line,

How does a reduction in the price level affect the position of the C + I + G + X curve and in turn the equilibrium level of real GDP?

-Consider the above figure.At an income of $60 we would expect saving to be equal to

Which of the following is negative for the "typical" consumer at some level of real disposable income?

The marginal propensity to save is

-Refer to the above figure.The figure represents the consumption function for a consumer.Point D represents

Thinking as an economist would,which is true of investment?

A lump-sum tax,such as a $1000 tax that every family must pay one time,is

The consumption function shifts upward when

Whenever total planned expenditures differ from real GDP,

Note: Amounts in $ trillions -Refer to the above table.Which variables in the table are NOT autonomous?

Which of the following is a true statement relative to retained earnings and investment?

If the marginal propensity to consume (MPC)is 0.75 and government purchases increase by $200 billion,then

Which of the following would cause a leftward shift in the investment function?

Other things being constant,if the marginal propensity to save (MPS)is 0.1,and private investment spending falls by $100 million,then real Gross Domestic Product (GDP)

Your real disposable income is your real income after you have paid

The saving function shows the relationship between planned real saving and

-Use the above table.The MPC is

The multiplier effect tends to

The investment function will shift when there is a change in