Question 1

-In the figure above, the multiplier equals

Accepted Answer

A)  2.5. 
B)  0.5. 
C)  10.0. 
D)  some amount that cannot be calculated without additional information. 
A)  2.5. 
B)  0.5. 
C)  10.0. 
D)  some amount that cannot be calculated without additional information.

Question 2

Aggregate planned expenditure

Accepted Answer

A)  equals actual aggregate expenditure at the equilibrium level of real GDP. 
B)  is always less than actual aggregate expenditure. 
C)  always equals actual aggregate expenditure. 
D)  is always greater than actual aggregate expenditure. 
A)  equals actual aggregate expenditure at the equilibrium level of real GDP. 
B)  is always less than actual aggregate expenditure. 
C)  always equals actual aggregate expenditure. 
D)  is always greater than actual aggregate expenditure.

Question 3

The slope of the aggregate expenditure curve equals the change in

Accepted Answer

A)  autonomous expenditure divided by the change in real GDP. 
B)  real GDP divided by the change in planned expenditure. 
C)  government expenditure divided by the change in real GDP. 
D)  planned expenditure divided by the change in real GDP. 
A)  autonomous expenditure divided by the change in real GDP. 
B)  real GDP divided by the change in planned expenditure. 
C)  government expenditure divided by the change in real GDP. 
D)  planned expenditure divided by the change in real GDP.

Question 4

$$\begin{array} { | l | l | l | l | } 
\hline \begin{array} { l } 
\text { Real GDP } \
\text { (dollars) }
\end{array} & \begin{array} { l } 
\text { Consumption } \
\text { expenditure } \
\text { (dollars) }
\end{array} & \begin{array} { l } 
\text { Investment } \
\text { (dollars) }
\end{array} & \begin{array} { l } 
\text { Government } \
\text { expenditure } \
\text { (dollars) }
\end{array} \
\hline 3,000 & 2,500 & 500 & 500 \
\hline 4,000 & 3,250 & 500 & 500 \
\hline 5,000 & 4,000 & 500 & 500 \
\hline 6,000 & 4,750 & 500 & 500 \
\hline 7,000 & 5,500 & 500 & 500 \
\hline 8,000 & 6,250 & 500 & 500 \
\hline
\end{array}$$
-In the above table, there are no taxes and no imports or exports. Investment increases from $500 to
$750. After the increase in investment, the new equilibrium level of output is

Accepted Answer

A)  $6,000. 
B)  $5,750. 
C)  $7,000. 
D)  $5,000. 
A)  $6,000. 
B)  $5,750. 
C)  $7,000. 
D)  $5,000.

-In the figure above, the multiplier equals

Aggregate planned expenditure

The slope of the aggregate expenditure curve equals the change in

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

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Exam 11: Expenditure Multipliers: the Keynesian Model

-In the figure above, the multiplier equals

Aggregate planned expenditure

The slope of the aggregate expenditure curve equals the change in

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters