Exam 11: Consumption, Real GDP, and the Multiplier

How is investment defined as an economic concept?

The marginal propensity to consume is calculated by

-Refer to the above figure. Line ACE is called

The investment function would shift inward to the left if

-Refer to the above figure. Autonomous consumption equals

-In the above figure, the equilibrium level of real GDP per year is

-According to the above figure, planned consumption and income are equal at an income level of

If your real disposable income goes up by $1,000 per week, and your real consumption spending goes up by $800 per week, you have a marginal propensity to consume of

When real Gross Domestic Product (GDP)exceeds total planned real expenditures,

Along the 45° reference line

The following would cause an upward shift in the C + I + G + X curve EXCEPT

-Refer to the above figure. The point at which saving equals zero is

In the Keynesian model, government spending is considered

-Use the above table. At an income of $150

-In the above figure, at the equilibrium level of real GDP, there is

The average propensity to save is

As real disposable income increases, we expect the average propensity to consume (APC)

Thinking as an economist would, which is TRUE of investment?

If real Gross Domestic Product (GDP)is above its equilibrium level,

-Refer to the above figure. If real Gross Domestic Product (GDP)is $2 trillion, then