Question 1

A permanent reduction in planned real investment spending leads to

Accepted Answer

A) a more than proportional increase in real GDP. 
B) a more than proportional decrease in real GDP. 
C) a less than proportional decrease in real GDP. 
D) a proportional decrease in real GDP. 
A) a more than proportional increase in real GDP. 
B) a more than proportional decrease in real GDP. 
C) a less than proportional decrease in real GDP. 
D) a proportional decrease in real GDP.

Question 2

If,at some level of output,total planned real expenditures are less than real Gross Domestic Product (GDP),

Accepted Answer

A) real GDP will rise. 
B) real GDP remains unchanged. 
C) real GDP will either fall or remain unchanged,depending on the MPC. 
D) unplanned inventories will increase and real GDP will fall. 
A) real GDP will rise. 
B) real GDP remains unchanged. 
C) real GDP will either fall or remain unchanged,depending on the MPC. 
D) unplanned inventories will increase and real GDP will fall.

Question 3

The following would cause an upward shift in the C + I + G + X curve EXCEPT

Accepted Answer

A) an increase in disposable income. 
B) an increase in export spending. 
C) a decrease in import spending 
D) an increase in household wealth. 
A) an increase in disposable income. 
B) an increase in export spending. 
C) a decrease in import spending 
D) an increase in household wealth.

Question 4

Suppose autonomous consumption decreases.This reduction in autonomous consumption will cause which of the following to occur?

Accepted Answer

A) The consumption function shifts down. 
B) The consumption function shifts up. 
C) The consumption function becomes steeper. 
D) The consumption function becomes less steep. 
A) The consumption function shifts down. 
B) The consumption function shifts up. 
C) The consumption function becomes steeper. 
D) The consumption function becomes less steep.

Question 5

Which of the following would increase the level of planned real investment?

Accepted Answer

A) An increase in the interest rate 
B) An expectation of higher future profits 
C) An expectation of higher future costs 
D) An increase in business taxes 
A) An increase in the interest rate 
B) An expectation of higher future profits 
C) An expectation of higher future costs 
D) An increase in business taxes

A permanent reduction in planned real investment spending leads to

If,at some level of output,total planned real expenditures are less than real Gross Domestic Product (GDP),

The following would cause an upward shift in the C + I + G + X curve EXCEPT

Suppose autonomous consumption decreases.This reduction in autonomous consumption will cause which of the following to occur?

Which of the following would increase the level of planned real investment?

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Fiscal Policy

Deficit Spending and the Public Debt

Money, banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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Exam 12: Consumption, real GDP, and the Multiplier

A permanent reduction in planned real investment spending leads to

If,at some level of output,total planned real expenditures are less than real Gross Domestic Product (GDP),

The following would cause an upward shift in the C + I + G + X curve EXCEPT

Suppose autonomous consumption decreases.This reduction in autonomous consumption will cause which of the following to occur?

Which of the following would increase the level of planned real investment?

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Fiscal Policy

Deficit Spending and the Public Debt

Money, banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters