Exam 11: Aggregate Expenditure

During the Great Depression in the 1930s unemployment was so bad that nearly _____ of the labor force was unemployed.

Foreign income is defined to be income earned:

Using Figure 3 above the distance between what 2 lines illustrate an inflationary output gap?

The multiplier measures the:

If the marginal propensity to consumer is 0.8, the spending multiplier must be:

If we consider the equation PAE = A + bY the part that corresponds to the MPC when we make simplifying assumptions is:

The spending multiplier tells us the:

Consumption spending is said to make up about ______ to _______ of most countries spending.

If the MPC = 0.75 for a particular person this means that:

Which of the following is not an example of a transfer payment?

The four components of aggregate expenditure (AE) are:

If the MPC were to increase from 0.75 to 0.8, then the spending multiplier would:

Economist John Maynard Keynes noted one of the main contributors to the Great Depression in the 1930s was:

If we consider the equation PAE = A + bY the part of the equation that relates to autonomous sources of spending is:

If the MPC is 0.5, and the government cuts spending by $400b, the overall effect on GDP will be:

In general economic environments that correspond to higher levels of planned aggregate expenditure for a given level of Y have PAE curves that are:

If the MPC is 0.75, and the government cuts spending by $100b, the overall effect on GDP will be:

Using Figure 3 above, suppose that the economy was at Y3. This level of GDP would be considered:

Wealth can be thought of as:

In Figure 1 above if the economy were at Y3 then we would expect there to be: