�建 Microsoft Word �档

�建 Microsoft Word �档 - CHAPTER 9 1....

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CHAPTER 9 1. Which of the following is a Keynesian conclusion about how adjustments occur in a recessionary gap? A) Government should reduce intervention. B) Government should intervene to increase aggregate supply. C) Government should intervene to increase aggregate spending. D) Macro equilibrium automatically adjusts to full employment. 2. Given that C = 100 + 0.60Y, if the level of income is $1000, the level of saving is: A) $600. B) $400. C) $300. D) -$300. 3. The average propensity to consume is: A) The change in total consumption in a given period divided by the change in total disposable income. B) The change in total disposable income divided by the change in total consumption. C) 1 - APC. D) Total consumption divided by disposable income. 4. The marginal propensity to consume is: A) Total consumption in a given period divided by total disposable income. B) The fraction of each additional dollar of disposable income spent on consumption. C) The percentage of total disposable income spent on consumption.
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This note was uploaded on 04/11/2011 for the course ECO 2251 taught by Professor Kirkland during the Fall '09 term at Troy.

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�建 Microsoft Word �档 - CHAPTER 9 1....

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