Exam 8: Aggregate Expenditure and Equilibrium Output

Assume there is no government or foreign sector. If the MPS is 0.10, a $20 billion decrease in planned investment will cause aggregate output to decrease by

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

If unplanned inventory investment is zero

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

The economy can be in equilibrium if, and only if,

If the saving function is of the form [S = -15 + 0.4Y], consumption at an income level of 200 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. [-60 + 0.3Y] is this society's

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 positive along the line segment

If the MPS is 0.22, the MPC is

The Slippery Slope Company manufactures only snow skis. In 2016 Slippery Slope manufactured 10,000 snow skis, but sold 12,000 snow skis. In 2016 Slippery Slope's change in inventory was ________ snow skis.

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 amount of consumption this household makes when this household's income is zero

If unplanned business investment is $20 million and planned investment is $20 million, then actual investment is

Assume there is no government or foreign sector. If the multiplier is 10, a $10 billion increase in planned investment will cause aggregate output to increase by

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, the unplanned inventory change 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. The ________ for this household is 0.5 and the ________ is also 0.5.

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 ________ increase in investment changes equilibrium output to $240 million.

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 ________ equals his ________ at Point A.

Related to the Economics in Practice on p. 146: Under the Save More Tomorrow retirement plans, employees can pre-commit to save more

Refer to the information provided in Figure 8.9 below to answer the questions that follow. Figure 8.9 -Refer to Figure 8.9. [150 + 0.25Y] is the

Refer to the information provided in Table 8.9 below to answer the questions that follow. Table 8.9 -Refer to Table 8.9. Planned investment equals actual investment at