Exam 8: Aggregate Expenditure and Equilibrium Output

Refer to the information provided in Table 8.4 below to answer the questions that follow. Table 8.4 -Refer to Table 8.4.At an aggregate output level of $800 billion,aggregate saving

In macroeconomics,equilibrium is defined as that point at which

Suppose saving is $1,400 when income is $10,000 and the MPC equals 0.8.When income increases to $12,000,saving is

If S = -200 + 0.2Y and I = 100,then the equilibrium level of income is

Refer to the information provided in Table 8.5 below to answer the questions that follow. Table 8.5 -Refer to Table 8.5.Planned investment equals actual investment at

The ratio of the change in the equilibrium level of output to a change in some autonomous variable is the

Assuming there is no government or foreign sector,if the multiplier is 10,the MPC is

A decrease in planned investment causes

Refer to the information provided in Table 8.4 below to answer the questions that follow. Table 8.4 -Refer to Table 8.4.At an aggregate output level of $200 billion,the unplanned inventory change is

Refer to the information provided in Table 8.5 below to answer the questions that follow. Table 8.5 -Refer to Table 8.5.At an aggregate output level of $4,000 million,the unplanned inventory change is

Assuming no government or foreign sector,if the MPC is 0.9,the multiplier is

Midwest State University in Nebraska is trying to convince Nebraska taxpayers that the tax dollars spent at Midwest State University are well spent.One of the university's arguments is that for every $1 spent by Midwest State University an additional $5 of expenditures are generated within Nebraska.Midwest State University is arguing that the multiplier for their expenditures is

Refer to the information provided in Figure 8.7 below to answer the questions that follow. Figure 8.7 -Refer to Figure 8.7.In Azora,planned investment does not vary with income.Azora's planned investment function is represented by

When there is an unplanned draw down of inventories,firms will increase production.

Refer to the information provided in Figure 8.3 below to answer the questions that follow. Figure 8.3 -Refer to Figure 8.3.Which of the following statements is FALSE?

Refer to the information provided in Table 8.4 below to answer the questions that follow. Table 8.4 -Refer to Table 8.4.At an aggregate output level of $600 billion,the unplanned inventory change is

Refer to the information provided in Figure 8.3 below to answer the questions that follow. Figure 8.3 -Refer to Figure 8.3.In this economy,aggregate saving will be zero if income is

Firms react to unplanned inventory reductions by

Refer to the information provided in Figure 8.11 below to answer the questions that follow. Figure 8.11 -Refer to Figure 8.11.If MPC increases to 0.8,equilibrium aggregate output

Keynes used the phrase animal spirits to describe the feelings of entrepreneurs,and he argued that these feelings affect investment decisions.