29 The model focuses on the relationship between total spending and real GDP in

29 the model focuses on the relationship between

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29) The ________ model focuses on the relationship between total spending and real GDP in theshort run, assuming the price level is constant.A) business cycleB) supply and demandC) aggregate expenditureD) national incomeAnswer: C29)Page Ref: 772/390Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.30) Intel is the worldʹs largest semiconductor manufacturer and a major supplier of themicroprocessors and memory chips found in most personal computers. During the recession of2007-2009, Intelʹs revenues ________ and it ________ the size of its workforce.30)Page Ref: 771/389Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.6
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31) The key idea of the aggregate expenditure model is that in any particular year, the level of________ is determined mainly by the level of aggregate expenditure.31)Page Ref: 772/390Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.32) Which of the following isnotone of the four main categories of spending identified by JohnMaynard Keynes?32)Page Ref: 772/390Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.33) A decrease in ________ can put your job at risk if aggregate expenditures fall.A) the length of a business cycleB) consumer confidenceC) the inflation rateD) the natural rate of unemploymentAnswer: B33)Page Ref: 771/389Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.34) During the Great Depression, economists first began studying the relationship between34)Page Ref: 772/390Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.35) Consumption spending refers to ________ spending on goods and services.35)Page Ref: 772/390Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.36) Which of the following isnota component of aggregate expenditure?36)Page Ref: 772/390Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.7
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37) The aggregate expenditure model focuses on the short-run relationship between ________ and________.A) planned inventories; unplanned inventoriesB) unemployment; inflationC) nominal spending; nominal GDPD) real spending; real GDPAnswer: D37)Page Ref: 772/390Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.
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