Exam 8: Aggregate Expenditure and Equilibrium Output

Refer to the information provided in Figure 8.11 below to answer the questions that follow. Figure 8.11 -Refer to Figure 8.11. A $20 million decrease in autonomous consumption

The marginal propensity to consume is the change in consumption per change in income.

If autonomous consumption decreases, the size of the multiplier would

Refer to the information provided in Figure 8.11 below to answer the questions that follow. Figure 8.11 -Refer to Figure 8.11. A $10 million decrease in autonomous consumption

Suppose consumption is $7,500 when income is $4,000 and the MPS equals 0.4. When income increases to $6,000, consumption is

Refer to the information provided in Figure 8.2 below to answer the questions that follow. Figure 8.2 -Refer to Figure 8.2. Positive saving occurs along the line segment

Refer to the information provided in Figure 8.4 below to answer the questions that follow. Figure 8.4 -Refer to Figure 8.4. If income is Y₁, aggregate consumption is the smallest when the aggregate consumption function is

The MPS is

If the MPS is 0.3, the MPC is

Refer to the information provided in Figure 8.8 below to answer the questions that follow. Figure 8.8 -Refer to Figure 8.8. The amount of planned investment ________ if the interest rate falls from 8% to 4%.

Refer to the information provided in Table 8.10 below to answer the questions that follow. Table 8.10 -Refer to Table 8.10. The equilibrium level of aggregate output equals

The fraction of a change in income that is consumed or spent is called

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 Ichabodia, planned investment varies directly with income. Ichabodia's planned investment function is represented 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. On this graph, 4 represents the

Refer to the information provided in Table 8.10 below to answer the questions that follow. Table 8.10 -Refer to Table 8.10. Planned investment equals actual investment at

Refer to the information provided in Figure 8.1 below to answer the questions that follow. Figure 8.1 -Refer to Figure 8.1. An increase in the MPC

Refer to the information provided in Figure 8.6 below to answer the questions that follow. Figure 8.6 -Refer to Figure 8.6. Aggregate consumption is 960 when aggregate income is

Refer to the information provided in Table 8.8 below to answer the questions that follow. Table 8.8 -Refer to Table 8.8. At an aggregate output level of $4,000 million, the unplanned inventory change is

If the consumption function is of the form [C = 60 + 0.9Y], the MPS equals

If autonomous consumption increases, the size of the multiplier would