ch10tests

ch10tests - 1. Aggregateexpendituresconsistof: Response A....

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1.   Aggregate expenditures consist of:      Response Value Answer Feedback A.  consumption and  investment only. 0%      B.  consumption, investment,  and government spending. 0%      C.  consumption, investment,  government spending, and  exports. 0%      D.  consumption, investment,  government spending, and  net exports. 100%    See the definition aggregate expen the text.  Score: 0/0    2.   Expenditures that change as income changes are called:      Response Value  Answer Feedback A.  autonomous expenditures. 0%    See the definition induced expendit the text.  B.  total expenditures. 0%      C.  induced expenditures. 100%      D.  aggregate expenditures. 0%      Score: 0/0    3.
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  The curve that expresses the relationship between expenditures and income is called the:      Response Value Answer Feedback A. aggregate demand  curve. 0%      B. short-run aggregate  supply curve. 0%      C.  long-run aggregate  supply curve. 0%    The AE curve is a  positively sloped  curve that shows the  relationship between  national income and  aggregate  expenditure.  D.  aggregate  expenditures curve. 100%      Score: 0/0    4.   An increase in income will:    Score: 0/0   
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5.   If the marginal propensity to expend is 0.5, an increase in autonomous expenditures of $200 will cause income  to increase by:    Score: 0/0    6.   The marginal propensity to expend is assumed to be:    Score: 0/0    7.   If real wealth increases, we might expect the aggregate expenditures curve to: 
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  Score: 0/0    8.   In the multiplier model, which of the following will increase equilibrium income?    Score: 0/0    9.   Suppose a $200 billion decrease in autonomous expenditures causes equilibrium GDP to decline by $800  billion. What is the multiplier?   
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  Score: 0/0    10.   The hypothesis that expenditures are determined by lifetime income is called the:    Score: 0/0    1.   The multiplier model assumes   
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Score: 0/0    2.   Expenditures that do not systematically vary with income are      Response Value Answer Feedback A. autonomous  expenditures. 100%    Autonomous  expenditures do not  vary with income.  Induced  expenditures  increase (decrease)  when income  increases  (decreases).  B. induced  expenditures. 0%      C.  marginal  expenditures. 0%      D.  aggregate  expenditures. 0%      Score: 0/0    3.   Income  Expenditures  $ 0  $ 40  100  120  200 
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200  300  280  Given the information above, what is the marginal propensity to expend?    Score: 0/0    4.  
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ch10tests - 1. Aggregateexpendituresconsistof: Response A....

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