Exam 12: Aggregate Expenditure and Output in the Short Run

What impact does a decrease in the price level in the United States have on net exports and why?

If the MPC is 0.95,then a $10 million increase in disposable income will

Suppose the United States experiences a long period of inflation relative to other countries.How will this affect U.S.net exports?

Figure 12-1 -Refer to Figure 12-1.If the economy is at a level of aggregate expenditure given by point K,

Given Table 12-9 below,fill in the values of the marginal propensity to save (MPS)and the marginal propensity to consume (MPC).Show that MPC + MPS = 1. Table 12-9

Table 12-1 -Refer to Table 12-1.Using the table above,compute aggregate expenditure and identify the macroeconomic equilibrium.

If economists forecast an increase in aggregate expenditure,which of the following is likely to occur?

If planned investment is greater than actual investment,then aggregate expenditure is less than GDP.

When net exports equal zero,the economy is in macroeconomic equilibrium.

If aggregate expenditure is greater than GDP,how will the economy reach macroeconomic equilibrium?

The sum of the marginal propensity to consume and the marginal propensity to save is always equal to

Goods that have been produced but not yet sold are referred to as

During the Great Depression,economists first began studying the relationship between

What is the macroeconomic consequence if firms accumulate large amounts of unplanned inventory at the beginning of a recession?

An increase in the price level ________ real wealth,which causes consumption to ________.

An unplanned decrease in inventories results in

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

If the marginal propensity to save is 0.35,the multiplier is 2.86.

If the consumption function is defined as C = 5,500 + 0.9Y,what is the marginal propensity to consume?

In a small economy in 2013,aggregate expenditure was $800 million while GDP that year was $850 million.Which of the following can explain the difference between aggregate expenditure and GDP that year?