FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 23: Aggregate Expenditure and Equilibrium Output

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

Refer to the information provided in Figure 23.8 below to answer the question(s) that follow. Figure 23.8 -Refer to Figure 23.8. The amount of planned investment decreases if the interest rate

A) drops from 8% to 4%.
B) rises from 4% to 8%.
C) remains at 8%.
D) remains at 4%.

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is not considered investment?

A) the acquisition of capital goods
B) the purchase of government bonds
C) the increase in planned inventories
D) the construction of a new factory

Correct Answer

verified

Show Answer

Question 63

Multiple Choice

Review LaterAdd Note

Refer to the information provided in Table 23.2 below to answer the question(s) that follow. Table 23.2 -Refer to Table 23.2. Assuming society's MPC is constant, at an aggregate income of $1,200 aggregate saving would be

Uncertainty about the future is likely to

Suppose consumption is $5,000 when income is $8,000 and the MPC equals 0.9. When income increases to $10,000, consumption is

If autonomous consumption increases, the size of the multiplier would

If the MPS is 0.1, then the multiplier is 10.

Refer to the information provided in Figure 23.12 below to answer the question(s) that follow. Figure 23.12 -Refer to Figure 23.12. Suppose AE₁, AE₂ and AE₃ are not parallel. What is the value of Point B?

Refer to the information provided in Figure 23.5 below to answer the question(s) that follow. Figure 23.5 -Refer to Figure 23.5. Aggregate saving is -100 billion when aggregate income is ________ billion.

Refer to the information provided in Figure 23.2 below to answer the question(s) that follow. Figure 23.2 -Refer to Figure 23.2. Jerry's saving is positive along the line segment

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 23.4 below to answer the question(s) that follow. Figure 23.4 -Refer to Figure 23.4. Suppose the consumption function for C₁ is [C₁ = 15 + 0.4Y]. The consumption function that best fits C₃ is

Refer to the information provided in Table 23.1 below to answer the question(s) that follow. Table 23.1 -Refer to Table 23.1. Assuming society's MPC is constant at an aggregate of income of $300, aggregate consumption would be

A firm's inventory is the orders for goods that have yet to be produced.

If Earl received an $800 bonus and his MPS is 0.25, his consumption rises by $________ and his saving rises by $________.

Refer to the information provided in Table 23.7 below to answer the question(s) that follow. Table 23.7 -Refer to Table 23.7. At an aggregate output level of $600 billion, the unplanned inventory change is

Assuming there is no government or foreign sector, the economy will be in equilibrium if, and only if, planned investment equals actual investment.

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

Assuming no government or foreign sector, [1 / MPS] represents

Refer to the information provided in Table 23.3 below to answer the question(s) that follow. Table 23.3 -Refer to Table 23.3. The equation for the aggregate consumption function is