Question 1

If planned aggregate expenditure is greater than total production,

Accepted Answer

A) actual inventories will equal planned inventories. 
B) firms will experience an unplanned increase in inventories. 
C) GDP will increase. 
D) the economy is in equilibrium. 
A) actual inventories will equal planned inventories. 
B) firms will experience an unplanned increase in inventories. 
C) GDP will increase. 
D) the economy is in equilibrium.

Question 2

Concerned that its dependence on sales of microprocessors to computer firms would make it vulnerable to sharp sales declines during the recession of 2007-2009,Intel began to develop memory chips that could be used in portable consumer electronic devices such as tablets and smartphones.One reason that Intel chose to branch out from producing microprocessors for computers is that

Accepted Answer

A) sales of computers have been declining over the past decade. 
B) technology with respect to microprocessor production was no longer advancing at a rate where Intel's new products were still wanted by computer manufacturers. 
C) Intel had lost a majority of its market share in microprocessor production to foreign competition. 
D) computers are durable goods and spending on computers follows the business cycle. 
A) sales of computers have been declining over the past decade. 
B) technology with respect to microprocessor production was no longer advancing at a rate where Intel's new products were still wanted by computer manufacturers. 
C) Intel had lost a majority of its market share in microprocessor production to foreign competition. 
D) computers are durable goods and spending on computers follows the business cycle.

Question 3

C = 4,000 + 0.5Y
I = 1,500
G=2,250
NX = -150
Given the equations for C,I,G,and NX above,what is the equilibrium level of GDP (Y)?

Accepted Answer

Y = C + I + G + NX. Y = 4,000

Question 4

Which of the following is a true statement about the multiplier?

Accepted Answer

A) The multiplier rises as the MPC rises. 
B) The smaller the MPC,the larger the multiplier. 
C) The multiplier is a value between zero and one. 
D) The multiplier effect does not occur when autonomous expenditure decreases. 
A) The multiplier rises as the MPC rises. 
B) The smaller the MPC,the larger the multiplier. 
C) The multiplier is a value between zero and one. 
D) The multiplier effect does not occur when autonomous expenditure decreases.

Question 5

Figure 12-1  
-Refer to Figure 12-1.At point J in the figure above,which of the following is true?

Accepted Answer

A) Aggregate expenditure is less than GDP. 
B) The economy has achieved macroeconomic equilibrium. 
C) Actual inventories are less than planned inventories. 
D) GDP will be decreasing. 
A) Aggregate expenditure is less than GDP. 
B) The economy has achieved macroeconomic equilibrium. 
C) Actual inventories are less than planned inventories. 
D) GDP will be decreasing.

Question 6

When we graph consumption as a function of national income rather than as a function of ________,the slope of this consumption function is the ________.

Accepted Answer

A) disposable income; MPC 
B) personal income; MPC 
C) disposable income; MPS 
D) personal income; MPS 
A) disposable income; MPC 
B) personal income; MPC 
C) disposable income; MPS 
D) personal income; MPS

If planned aggregate expenditure is greater than total production,

C = 4,000 + 0.5Y I = 1,500 G=2,250 NX = -150 Given the equations for C,I,G,and NX above,what is the equilibrium level of GDP (Y)?

Which of the following is a true statement about the multiplier?

Figure 12-1 -Refer to Figure 12-1.At point J in the figure above,which of the following is true?

When we graph consumption as a function of national income rather than as a function of ,the slope of this consumption function is the .

Economics: Foundations and Models

Trade-Offs,comparative Advantage,and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms,the Stock Market,and Corporate Governance

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 12: Aggregate Expenditure and Output in the Short Run

If planned aggregate expenditure is greater than total production,

C = 4,000 + 0.5Y I = 1,500 G=2,250 NX = -150 Given the equations for C,I,G,and NX above,what is the equilibrium level of GDP (Y)?

Which of the following is a true statement about the multiplier?

Figure 12-1 -Refer to Figure 12-1.At point J in the figure above,which of the following is true?

When we graph consumption as a function of national income rather than as a function of ________,the slope of this consumption function is the ________.

Economics: Foundations and Models

Trade-Offs,comparative Advantage,and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms,the Stock Market,and Corporate Governance

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

When we graph consumption as a function of national income rather than as a function of ,the slope of this consumption function is the .