Exam 11: Expenditure Multipliers

-The equilibrium in the above figure is shown at point

A fall in the price level shifts the aggregate expenditure curve upward and increases the quantity of real GDP demanded.

Discuss how the marginal propensity to consume, imports, and income tax rates influence the multiplier.

-The data in the above table indicate that autonomous expenditure is

-In the above figure, autonomous expenditure along AE? equals

In a diagram with the consumption function, the 45-degree line indicates all points where

Which of the following will NOT shift the consumption function upward?

When disposable income equals consumption expenditure, then

What is the difference between movements along the consumption function and shifts in the consumption function? What factor or factors lead to movements along the consumption function and what factor or factors lead to shifts in the consumption function?

The multiplier is greater than 1 because

-In the above figure the economy is initially at point A on the aggregate expenditure curve AE?. Suppose investment decreases. As a result

Saving rather than dissaving occurs at any level of disposable income at which

-Using the data from the above table, the marginal propensity to save is

Saving equals

How does the economy adjust so that aggregate planned expenditure equals real GDP?

The Keynesian model of aggregate expenditure assumes that

Since 1970, U.S. consumption function has generally shifted ________ because of ________.

-In the above figure, if real GDP equals $13 trillion

Autonomous consumption is equal to

Changes in which of the following will affect the size of the multiplier? I.marginal propensity to import II.marginal propensity to consume III.marginal income tax rate