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

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

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

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

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

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

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

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

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

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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