Can25L4
1
The table gives the components of aggregate planned expenditure in the economy of Sher. Equilibrium expenditure occurs when real GDP equals ____________________.
$2.0 billion
$2.5 billion
$3.0 billion
$5.0 billion
2
The table gives the components of aggregate planned expenditure in the economy of Sher. Autonomous expenditure is ___________ and the slope of the aggregate expenditure curve is __________.
$0.9 billion; 0.7
zero; 0.3
$3.0 billion; 0.7
$2.4 billion; 0.3
3
The table gives the components of aggregate planned expenditure in the economy Sher. If investment increases by $0.3 billion, equilibrium expenditure increases to _____________ and the multiplier is _______________.
$4.0 billion; 10/3
$3.5 billion; 5/3
$3.0 billion; 0
$2.0 billion; -10/3
4
The table gives the components of aggregate planned expenditure in the economy Sher. The multiplier is __________, and for equilibrium expenditure to decrease by $1 billion, autonomous expenditure must decrease by ______________.
3.3; $0.3 billion
1.0; $1.0 billion
zero; $1.0 billion
0.3; $0.3 billion
5
The figure shows the economy of Tropical Isle. The price level is 100. When aggregate planned expenditure equals 25 billion seashells, aggregate planned expenditure is _______ than real GDP and there is an unplanned _______ in inventories and real GDP will ___________.
less; increase; decrease
greater; decrease; increase
greater; increase; decrease
less; decrease; increase
6
An increase in autonomous expenditure will _______ the aggregate expenditure curve and an increase in the marginal propensity to save will _______ the aggregate expenditure curve, all other things remaining the same.
increase the slope of; shift
increase the slope of; decrease the slope of
shift; decrease the slope of
shift; shift
7
The _______ the marginal propensity to consume, the _______ is the slope of the aggregate expenditure curve and the _______ is the multiplier.
smaller; greater; larger
larger; greater; smaller
larger; greater; larger
larger; lower; larger
8
The multiplier is 1.5. A decrease in investment of $5 billion will shift the aggregate demand curve __________ by _______________.
leftward; $5 billion
rightward; less than $5 billion
leftward; $7.5 billion
leftward; less than $5 billion
9
The multiplier is 1.5. If investment decreases by $5 billion and the
SAS
curve slopes upward, then in the short run, equilibrium expenditure will decrease by __________________.
$7.5 billion
more than $7.5 billion
less than $7.5 billion
$5 billion
10
An economy is at point
a
in the figure. Investment increases. The economy will move to point _______ in the short run and to point _______ in the long run.
d; c
b; c
d; a
b; a
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