Question 1

What is autonomous spending?

Accepted Answer

A) The portion of total spending that is dependent of the level of income. 
B) The portion of total spending that is independent of the level of income. 
C) The level of spending which never varies. 
D) The portion of income that is dependent on the level of spending. 
A) The portion of total spending that is dependent of the level of income. 
B) The portion of total spending that is independent of the level of income. 
C) The level of spending which never varies. 
D) The portion of income that is dependent on the level of spending.

Question 2

In the following table,you are given the following parameters for the economy of Patris:
   a)What is the value of expenditures equilibrium?
b)What is the value of total leakages and injections at expenditures equilibrium?
c)What is the value of the multiplier?

Accepted Answer

a)$1,600
b)Leakages

Question 3

If the MPE is equal to 0.6,what is the value of the MLR?

Accepted Answer

A) 0.4. 
B) 0.6. 
C) 1.66. 
D) 2.5 
A) 0.4. 
B) 0.6. 
C) 1.66. 
D) 2.5

Question 4

-Refer to the above graph to answer this question.What is the value of the MPC?

Accepted Answer

A) 0 
B) 0.4 
C) 0.6 
D) 1 
E) 2.5 
A) 0 
B) 0.4 
C) 0.6 
D) 1 
E) 2.5

Question 5

The following partial data relates to a national economy (all figures in $billions):
  
-Refer to the above table to answer this question.What is the value of equilibrium income?

Accepted Answer

A) 0. 
B) $400. 
C) $666. 
D) $1,000. 
E) $2,000. 
A) 0. 
B) $400. 
C) $666. 
D) $1,000. 
E) $2,000.

Question 6

The following data refers to a national economy with all figures in $billions.
  
-Refer to the table above to answer this question.If investment were to increase by $100,what would be the new value of equilibrium income?

Accepted Answer

A) $1,200 
B) $1,400 
C) $1,600 
D) $2,000 
E) $2,400 
A) $1,200 
B) $1,400 
C) $1,600 
D) $2,000 
E) $2,400

Question 7

If the MPC is 0.8,then what is the value of the MPS?

Accepted Answer

A) 0.8 
B) 0.2 
C) 0.25 
D) 1 
E) 4 
A) 0.8 
B) 0.2 
C) 0.25 
D) 1 
E) 4

Question 8

-Refer to the graph above to answer this question.What is the equation for the saving function?

Accepted Answer

A) S = -200 + 0.2Y. 
B) S = 200 - 0.2Y. 
C) S = 200 + 0.4Y. 
D) S = -200 + 0.6Y. 
E) S = -200 + 0.8Y. 
A) S = -200 + 0.2Y. 
B) S = 200 - 0.2Y. 
C) S = 200 + 0.4Y. 
D) S = -200 + 0.6Y. 
E) S = -200 + 0.8Y.

Question 9

What is the effect of an increase in the MPM?

Accepted Answer

A) The MLR will increase and the multiplier will increase. 
B) The MLR will decrease and the multiplier will increase. 
C) The MLR will increase and the multiplier will decrease. 
D) The MLR will decrease and the multiplier will decrease. 
E) The MLR will remain the same but the multiplier will increase. 
A) The MLR will increase and the multiplier will increase. 
B) The MLR will decrease and the multiplier will increase. 
C) The MLR will increase and the multiplier will decrease. 
D) The MLR will decrease and the multiplier will decrease. 
E) The MLR will remain the same but the multiplier will increase.

Question 10

-Refer to the above information to answer this question.What is the value of equilibrium income?

Accepted Answer

A) $500. 
B) $800. 
C) $1,000. 
D) $2,000. 
A) $500. 
B) $800. 
C) $1,000. 
D) $2,000.

Question 11

Given the information in the following table for the economy of Albas:
   a)Complete the table assuming that the MPC is constant.
b)What are the values of the MPC and MPS?
c)What are the equations for the consumption function and saving function?

Accepted Answer

a)See foll

Question 12

The following data relates to a national economy (all figures in $billions):
  
-Refer to the above graph to answer this question.What is the value of the MPE?

Accepted Answer

A) 0.5. 
B) 1. 
C) 2. 
D) $300. 
A) 0.5. 
B) 1. 
C) 2. 
D) $300.

Question 13

What is the effect of a decrease in the MTR?

Accepted Answer

A) The MLR will increase and the multiplier will increase. 
B) The MLR will decrease and the multiplier will increase. 
C) The MLR will increase and the multiplier will decrease. 
D) The MLR will decrease and the multiplier will decrease. 
A) The MLR will increase and the multiplier will increase. 
B) The MLR will decrease and the multiplier will increase. 
C) The MLR will increase and the multiplier will decrease. 
D) The MLR will decrease and the multiplier will decrease.

Question 14

What five factors will cause a change in autonomous investment?

Accepted Answer

The five factors that cause a change in

Question 15

Which of the following will result in an increase in investment spending?

Accepted Answer

A) A higher real interest rate,if the nominal interest rate has decreased. 
B) New,higher-quality existing stock of capital. 
C) Less government red-tape. 
D) Newer consumer durables. 
E) Higher installation price for capital goods. 
A) A higher real interest rate,if the nominal interest rate has decreased. 
B) New,higher-quality existing stock of capital. 
C) Less government red-tape. 
D) Newer consumer durables. 
E) Higher installation price for capital goods.

Question 16

-Refer to the graph above to answer this question.What is the value of the MPS?

Accepted Answer

A) 0.2. 
B) 0.25. 
C) 0.4. 
D) 0.5. 
E) -100. 
A) 0.2. 
B) 0.25. 
C) 0.4. 
D) 0.5. 
E) -100.

Question 17

Define marginal propensity to consume.

Accepted Answer

Marginal propensity to consume

Question 18

-Refer to the data above to answer this question.What is the equation for the consumption function?

Accepted Answer

A) C = 200Y. 
B) C = 200 + Y. 
C) C = 200 + 0.6Y. 
D) C = 0.8Y. 
E) C = 200 + 0.8Y. 
A) C = 200Y. 
B) C = 200 + Y. 
C) C = 200 + 0.6Y. 
D) C = 0.8Y. 
E) C = 200 + 0.8Y.

Question 19

What is meant by the term induced consumption?

Accepted Answer

A) It is the portion of consumer spending that is unrelated to income levels. 
B) It is the necessary amount of spending that consumers must undertake. 
C) It is the portion of income which is not saved. 
D) It is the portion of consumer spending which is dependent on the level of income. 
A) It is the portion of consumer spending that is unrelated to income levels. 
B) It is the necessary amount of spending that consumers must undertake. 
C) It is the portion of income which is not saved. 
D) It is the portion of consumer spending which is dependent on the level of income.

Question 20

What is meant by the term expenditures equilibrium? What are the three equivalent ways of expressing it?

Accepted Answer

Expenditures equilibrium is the income a

What is autonomous spending?

In the following table,you are given the following parameters for the economy of Patris: a)What is the value of expenditures equilibrium? b)What is the value of total leakages and injections at expenditures equilibrium? c)What is the value of the multiplier?

If the MPE is equal to 0.6,what is the value of the MLR?

-Refer to the above graph to answer this question.What is the value of the MPC?

The following partial data relates to a national economy (all figures in $billions): -Refer to the above table to answer this question.What is the value of equilibrium income?

The following data refers to a national economy with all figures in $billions. -Refer to the table above to answer this question.If investment were to increase by $100,what would be the new value of equilibrium income?

If the MPC is 0.8,then what is the value of the MPS?

-Refer to the graph above to answer this question.What is the equation for the saving function?

What is the effect of an increase in the MPM?

-Refer to the above information to answer this question.What is the value of equilibrium income?

Given the information in the following table for the economy of Albas: a)Complete the table assuming that the MPC is constant. b)What are the values of the MPC and MPS? c)What are the equations for the consumption function and saving function?

The following data relates to a national economy (all figures in $billions): -Refer to the above graph to answer this question.What is the value of the MPE?

What is the effect of a decrease in the MTR?

What five factors will cause a change in autonomous investment?

Which of the following will result in an increase in investment spending?

-Refer to the graph above to answer this question.What is the value of the MPS?

Define marginal propensity to consume.

-Refer to the data above to answer this question.What is the equation for the consumption function?

What is meant by the term induced consumption?

What is meant by the term expenditures equilibrium? What are the three equivalent ways of expressing it?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters

Exam 6: Aggregate Expenditures

What is autonomous spending?

In the following table,you are given the following parameters for the economy of Patris: a)What is the value of expenditures equilibrium? b)What is the value of total leakages and injections at expenditures equilibrium? c)What is the value of the multiplier?

If the MPE is equal to 0.6,what is the value of the MLR?

-Refer to the above graph to answer this question.What is the value of the MPC?

The following partial data relates to a national economy (all figures in $billions): -Refer to the above table to answer this question.What is the value of equilibrium income?

The following data refers to a national economy with all figures in $billions. -Refer to the table above to answer this question.If investment were to increase by $100,what would be the new value of equilibrium income?

If the MPC is 0.8,then what is the value of the MPS?

-Refer to the graph above to answer this question.What is the equation for the saving function?

What is the effect of an increase in the MPM?

-Refer to the above information to answer this question.What is the value of equilibrium income?

Given the information in the following table for the economy of Albas: a)Complete the table assuming that the MPC is constant. b)What are the values of the MPC and MPS? c)What are the equations for the consumption function and saving function?

The following data relates to a national economy (all figures in $billions): -Refer to the above graph to answer this question.What is the value of the MPE?

What is the effect of a decrease in the MTR?

What five factors will cause a change in autonomous investment?

Which of the following will result in an increase in investment spending?

-Refer to the graph above to answer this question.What is the value of the MPS?

Define marginal propensity to consume.

-Refer to the data above to answer this question.What is the equation for the consumption function?

What is meant by the term induced consumption?

What is meant by the term expenditures equilibrium? What are the three equivalent ways of expressing it?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters