Quiz - Chapters 27, 28 and 30 (Practice)

Quiz - Chapters 27, 28 and 30 (Practice) - Points Awarded...

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Points Awarded 293.33 Points Missed 6.67 Percentage 97.8% 1. Intertemporal substitution means changes in purchases A) through time. B) between imports and exports. C) across different stores. D) across different goods and services. Points Earned: 3.3/3.3 Correct Answer(s): A 2. In the above figure, if real GDP equals $12 trillion, there would be A) an increase in autonomous consumption expenditure. B) an increase in autonomous inventories. C) no change in GDP. D) an unplanned increase in firms' inventories. Points Earned: 3.3/3.3 Correct Answer(s): C
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3. The sum of the components of aggregate expenditure that vary with real GDP is called A) induced expenditures. B) the MPC. C) autonomous expenditures. D) autonomous consumption. Points Earned: 3.3/3.3 Correct Answer(s): A 4. In the above figure, initially the economy is at point A on consumption function C0. Which of the following represents the effect of an expectation that incomes will fall in the future? A) The consumption function shifts from C0 to a consumption function such as C2. B) The consumption function shifts from C0 to a consumption function such as C1. C) There is a movement from point A to a point such as B along consumption function C0. D) There is a movement from point A to a point such as C along consumption function C0. Points Earned: 3.3/3.3 Correct Answer(s): B
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5. Which of the following shifts the aggregate demand curve rightward? A) an increase in the price level B) an increase in the income tax rate C) an increase in government expenditures D) a decrease in investment Points Earned: 3.3/3.3 Correct Answer(s): C 6. In the above figure, an increase in autonomous expenditure is depicted by the movement from point E to A) point F. B) point G. C) point H. D) point I. Points Earned: 3.3/3.3 Correct Answer(s): A 7.
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In the figure above, the multiplier equals A) 0.5. B) 2.5. C) 10.0. D) some amount that cannot be calculated without additional information. Points Earned: 3.3/3.3 Correct Answer(s): B 8. Real GDP (dollars) Consumption expenditure (dollars) Investment (dollars) Government expenditure (dollars) 3,000 2,500 500 500 4,000 3,250 500 500 5,000 4,000 500 500 6,000 4,750 500 500 7,000 5,500 500 500 8,000 6,250 500 500 In the above table, there are no taxes (so that that real GDP equals disposable income) and no imports or exports. If real GDP decreases from $6,000 to $5,000, the marginal propensity to consume is A) -750. B) -0.75.
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C) 0.75. D) 0.80. Points Earned: 3.3/3.3 Correct Answer(s): C 9. Aggregate planned expenditure A) always equals actual aggregate expenditure. B) is always less than actual aggregate expenditure. C) is always greater than actual aggregate expenditure. D) equals actual aggregate expenditure at the equilibrium level of real GDP. Points Earned:
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Quiz - Chapters 27, 28 and 30 (Practice) - Points Awarded...

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