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Quiz 6_Chapter 12_Sample.docx - University of Arkansas Econ...

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University of Arkansas Econ 2013: Principles of Macroeconomics Quiz 6: Sample 1) When aggregate expenditure is more than GDP, which of the following is true? A) There was an unplanned decrease in inventories. B) Firms spent less on capital goods than they planned. C) Households bought fewer new homes than they planned. D) All of the above must be true when aggregate expenditure is more than GDP. Answer: A 2) Consumption spending is $5 million, planned investment spending is $8 million, unplanned investment spending is -$2 million, government purchases are $10 million, and net export spending is $2 million. What is GDP? A) $15 million B) $23 million C) $25 million D) $27 million Answer: B Table 12-4 Consumption (dollars ) Disposable Income (dollars) $600 $1,000 900 1,500 1,200 2,000 3) Refer to Table 12-4. Given the consumption schedule in the table above, the marginal propensity to consume is A) 0.5. B) 0.6. C) 0.75. D) 0.8. Answer: B Figure 12-2 1
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4) Refer to Figure 12-2. If the U.S. economy is currently at point N , which of the following could cause it to move to point K ?
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