Exam 23: Aggregate Expenditure and Output in the Short Run

Equations for C,I,G,and NX are given below.If the equilibrium level of GDP is $21,500,what is the marginal propensity to consume? C = 1,500 + (MPC)Y I = 1,000 G = 2,000 NX = -200

The change in consumption divided by the change in disposable income is equal to

If planned aggregate expenditure is above potential GDP and planned aggregate expenditure equals GDP,then

If national income increases by $20 million and consumption increases by $5 million,the marginal propensity to consume is

The multiplier is calculated as the

A decrease in ________ can put your job at risk if aggregate expenditures fall.

When we graph consumption as a function of ________ rather than as a function of disposable income,the slope of this consumption function is ________.

If aggregate expenditure is more than GDP,then inventories fall and GDP rises.

Why is the aggregate demand curve downward sloping while the aggregate expenditure line is upward sloping?

Autonomous expenditure is a type of expenditure that does not depend on

On the 45-degree line diagram,for points that lie above the 45-degree line

Table 23-3 Consumption (dollars) Disposable Income (dollars) \ 1,200 \ 3,000 2,100 4,000 3,000 5,000 -Refer to Table 23-3.Given the consumption schedule in the table above,the marginal propensity to consume is

Which of the following leads to an increase in real GDP?

Consumption is $5 million,planned investment spending is $8 million,government purchases are $10 million,and net exports are equal to $2 million.If GDP during that same time period is equal to $23 million,what unplanned changes in inventories occurred?

During a(n)________ many firms experience increased profits,which increases ________ and investment spending.

The consumption function describes the relationship between

The larger the MPC,the smaller the value of the multiplier.

The aggregate expenditure model focuses on the ________ relationship between real spending and ________.

Figure 23-2 -Refer to Figure 23-2.If the U.S.economy is currently at point K,which of the following could cause it to move to point N?

Aggregate expenditure includes consumption spending,planned investment spending,government purchases,and net exports.