Exam 8: Aggregate Expenditure and Equilibrium Output

Refer to the information provided in Table 8.1 below to answer the questions that follow. Table 8.1 -Refer to Table 8.1. At an aggregate income level of $100, aggregate saving would be

If Lily's consumption function is of the form [C = 100 + 0.8Y], her saving equals zero at an income level of

Which of the following is an investment?

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 increase in investment changes equilibrium output to

Refer to the information provided in Table 8.1 below to answer the questions that follow. Table 8.1 -Refer to Table 8.1. Society's MPC is

Refer to the information provided in Table 8.10 below to answer the questions that follow. Table 8.10 -Refer to Table 8.10. At an aggregate output level of $2,000 million, planned expenditure equals

Y = C + S even when the economy is not in equilibrium.

Which of the following is not considered investment?

Reducing the interest rate, ceteris paribus, is likely to reduce the level of planned investment spending.

Firms react to negative inventory investment by increasing output.

Refer to the information provided in Figure 8.2 below to answer the questions that follow. Figure 8.2 -Refer to Figure 8.2. Jerry's saving is negative along the line segment

Refer to the information provided in Table 8.7 below to answer the questions that follow. Table 8.7 -Refer to Table 8.7. Planned investment equals actual investment at

Refer to the information provided in Figure 8.10 below to answer the questions that follow. Figure 8.10 -Refer to Figure 8.10. At aggregate output levels below $1,000 million, there are

Suppose consumption is $20,000 when income is $32,000 and the MPC equals 0.8. When income increases to $40,000, consumption is

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 saving equals planned investment at an aggregate output level of

A decrease in planned investment causes

If C = 100 + 0.8Y and I = 50, then the equilibrium level of income is

If planned investment is ________ to changes in the interest rate, the planned investment schedule is vertical.

Assume that in Scandia, planned investment is $80 billion but actual investment is $60 billion. Unplanned inventory investment is

Refer to the information provided in Figure 8.1 below to answer the questions that follow. Figure 8.1 -Refer to Figure 8.1. This household consumes ________ at an income level of $3,000.