Question 1

If AE = 100 + 0.7Y and Y = 300, then unplanned inventories

Accepted Answer

A)  increase by 10.
B)  decrease by 200.
C)  increase by 200.
D)  decrease by 10.
E)  do not change and equilibrium exists.F) A) and B)
G) A) and C)

Question 2

The aggregate expenditure curve will become steeper if

Accepted Answer

A)  income tax rates are raised.
B)  firms expect an increase in future profit.
C)  income tax rates are lowered.
D)  people show an increased preference for foreign- made products.
E)  people become thriftier.F) C) and D)
G) B) and E)

Question 3

Use the information below to answer the following questions.
Fact 11.3.1
An economy has a fixed price level, no imports, and no income taxes.MPC is 0.5 and real GDP is $200 billion.Businesses incr investment by $2 billion.
-Consider Fact 11.3.1.The increase in real GDP is

Accepted Answer

A)  $2 billion.
B)  $404 billion.
C)  $1.6 billion.
D)  $4 billion.
E)  $202 billion.F) B) and D)
G) A) and B)

Question 4

The marginal propensity to import is equal to

Accepted Answer

A)  the change in imports divided by the change in real GDP that brought it about, other things remaining the same.
B)  1 - MPS - MPC.
C)  imports minus exports.
D)  disposable income minus consumption expenditure minus saving divided by real GDP.
E)  the change in net imports divided by the change in disposable income, other things remaining the same.F) B) and E)
G) A) and B)

Question 5

A decrease in the marginal propensity to import _______, everything else remaining the same.

Accepted Answer

A)  makes the multiplier larger
B)  makes the multiplier smaller
C)  increases the marginal propensity to consume
D)  has no effect on the multiplier
E)  sometimes increases the multiplier and sometimes decreases the multiplierF) A) and C)
G) A) and E)

Question 6

Use the figure below to answer the following questions.
 a, then A) the economy is in equilibrium. B) real GDP decreases. C) actual expenditure is greater than planned expenditure. D) planned expenditure is equal to actual expenditure. E) actual expenditure is less than planned expenditure." class="answers-bank-image d-inline" rel="preload" > Figure 11.2.1
There are no exports or imports in this economy.
-Refer to Figure 11.2.1.When real GDP is equal to Ya, then

Accepted Answer

A)  the economy is in equilibrium.
B)  real GDP decreases.
C)  actual expenditure is greater than planned expenditure.
D)  planned expenditure is equal to actual expenditure.
E)  actual expenditure is less than planned expenditure.F) C) and D)
G) B) and C)

Exam 11: Expenditure Multipliers

If AE = 100 + 0.7Y and Y = 300, then unplanned inventories

Correct Answer
verified

Use the figure below to answer the following questions. Figure 11.2.1 There are no exports or imports in this economy. -Refer to Figure 11.2.1.When real GDP is equal to Y_a, then

Correct Answer
verified

Use the information below to answer the following questions. Fact 11.3.1 An economy has a fixed price level, no imports, and no income taxes.MPC is 0.5 and real GDP is $200 billion.Businesses incr investment by $2 billion. -Consider Fact 11.3.1.The increase in real GDP is

Correct Answer
verified

The marginal propensity to import is equal to

Correct Answer
verified

A decrease in the marginal propensity to import _______, everything else remaining the same.

Correct Answer
verified

The aggregate expenditure curve will become steeper if

Correct Answer
verified

Exam 11: Expenditure Multipliers

If AE = 100 + 0.7Y and Y = 300, then unplanned inventories

Correct AnswerverifiedShow Answer

Use the figure below to answer the following questions. Figure 11.2.1 There are no exports or imports in this economy. -Refer to Figure 11.2.1.When real GDP is equal to Ya, then

Correct AnswerverifiedShow Answer

Use the information below to answer the following questions. Fact 11.3.1 An economy has a fixed price level, no imports, and no income taxes.MPC is 0.5 and real GDP is $200 billion.Businesses incr investment by $2 billion. -Consider Fact 11.3.1.The increase in real GDP is

Correct AnswerverifiedShow Answer

The marginal propensity to import is equal to

Correct AnswerverifiedShow Answer

A decrease in the marginal propensity to import _______, everything else remaining the same.

Correct AnswerverifiedShow Answer

The aggregate expenditure curve will become steeper if

Correct AnswerverifiedShow Answer

Correct Answer
verified

Use the figure below to answer the following questions. Figure 11.2.1 There are no exports or imports in this economy. -Refer to Figure 11.2.1.When real GDP is equal to Y_a, then

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified