Exam 12: Aggregate Expenditure and Output in the Short Run

National income =

Which of the following will reduce consumer expenditures?

Household wealth is defined as the value of a household's

Which of the following will raise consumer expenditures?

During a(n)________ many firms experience increased profits,which increases ________ and investment spending.

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

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

Equations for C,I,G,and NX are given below.If the equilibrium level of GDP is $32,000,what is the marginal propensity to consume? C = 5,000 + (MPC)Y I = 1,500 G = 2,000 NX = -500

Higher interest rates increase both consumption and investment spending.

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

Examples of assets that are included in household wealth would be

If the marginal propensity to save is 0.4,then a $2 million increase in disposable income will

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

Which of the following will increase aggregate expenditure in the United States?

If consumption is defined as C = 1,350 + 0.6Y,then the marginal propensity to consume is 0.6.

If planned aggregate expenditure is above potential GDP and planned aggregate expenditure equals GDP,then

________ consumption is consumption that does not depend upon the level of GDP.

An increase in the price level in the United States will have what effect on the aggregate expenditure line?

In a small economy in 2016,aggregate expenditure was $850 million while GDP that year was $800 million.Which of the following can explain the difference between aggregate expenditure and GDP that year?

If inflation in the United States is lower than inflation in other countries,what will be the effect on net exports for the United States?