Exam 12: Aggregate Expenditure and Output in the Short Run

Suppose the United States experiences a long period of relatively stable prices while other countries experience long periods of inflation.How will this affect U.S.net exports?

Consumption spending is $5 million,planned investment spending is $8 million,unplanned investment spending is $2 million,government purchases are $10 million,and net export spending is $2 million.What is GDP?

If planned aggregate expenditure is less than total production,

________ usually increase(s)when the U.S.economy is in a recession and decrease(s)when the U.S.economy is expanding.

Macroeconomic equilibrium occurs when

If the consumption function is defined as C = 7,250 + 0.8Y,what is the autonomous level of consumption expenditure?

If firms are more optimistic that future profits will rise and remain strong for the next few years,then

The difference between GDP and disposable income is

U.S.net export spending rises when

What are the five main determinants of consumption spending? Which of these is the most important?

Which of the following leads to a decrease real GDP?

Table 12-4 -Refer to Table 12-4.Given the consumption schedule in the table above,the marginal propensity to consume is

Investment spending ________ during a recession,and ________ during an expansion.

The larger the MPS,the smaller the value of the multiplier.

If the marginal propensity to consume is 0.6,the marginal propensity to save is

John Maynard Keynes argued that if many households decide at the same time to increase saving and reduce spending,

Decreases in the price level will

Consumer spending ________ and investment spending ________.

Assume that inventories declined by more than analysts predicted.This implies that

The passage of the Smoot-Hawley Tariff in 1930 sparked a trade war that caused net exports to ________ and real GDP to ________.