Test
Chapter 12
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Preguntas del test (30)
1The aggregate expenditure model focuses on the relationship of between ______ and ____ in the short run assuming ______ is constant,
- AA) total production, total income, real GDP
- BB) total spending, real GDP, total income
- CC) total spending, real GDP, the price level
- DD) total income, real GDP, the price level
2As a result of slow economic growth following the recession of 2007-2009 many companies including Cisco systems, lockhead martin, cracker barrel old country cut production and employment as a result of sluggish growth in the total amount of spending in the economy. the total amount of spending in uncommonly is known as
- AA) deficit spending
- BB) planned investment spending
- CC) aggregate spending
- DD) equilibrium spending
3the key idea of the aggregate expenditure model is that any particiular year the level of GDP is determined mainly by
- AA) investment spending
- BB) export spending
- CC) government spending
- DD) the level of aggregate expenditure
4A decrease in cosumer confidence can put your job at risk if
- AA) aggregate expenditures fall
- BB) consumers expect their incomes to rise in the future
- CC) aggregate expenditures rise
- DD) consumers expect firms to increase investment in the future
5Economists first began studying the relationship between changes in the aggregate expenditure and changed in the GDO
- AA) in the 1950's
- BB) during the great deppression
- CC) at the end of the civil war
- DD) during the industrial revolution
6The aggregate expenditure model focusses on the ______ relationship between real spending and __________
- AA) short run, real gdp
- BB) short run, inflation
- CC) long run, real GDP
- DD) long run, inflation
7The formula for aggregate expenditure is
- AA) AE= C+I+G
- BB) AE= C+I+G-NX
- CC) AE= C+1+G+ NX
- DD) AE = C+1+depreciation -NX
8If inventories decline by more the analysts predict they will decline this implies that
- AA) actual investment spending was greater then planned investment spending
- BB) actual investment spending was less planned than investment spending
- CC) actual investment spending was equal to than planned investment spending
- DD) there is no relationship between actual investment spending and planned investment spending
9When aggregate expenditure =GDP
- AA) macroeconomics eqilibrium occurs
- BB) the federal budget is balanced
- CC) net exports equal zero
- DD) savings equal zero
10cosumption is $5 millón planned investment spending is $8 million, government purchases are $10 million and net exports are equal to 2 million. if GDP during the same time period equal to $27 million what unplanned changes in inventories occurred
- AA) There was an unplanned increase in inventories equal to $2 million
- BB) there was no unplanned change in inventories
- CC) There was an unplanned decrease in inventories equal to $2 million
- DD) There was an unplanned decrease in inventories equal to $19 million
11What is the largest component of aggregate expenditure
- AA) planned investment expenditures
- BB) consumption expenditures
- CC) government expenditures
- DD) net export expenditures
12Which of the following will cause direct increase in consumption spending?
- AA) An increase in planned investment
- BB) An increase in government spending
- CC) an increase in disposable income
- DD) a decrease in net export spending
13____ in taxes will decrease consumption spending, and ____ in transfer payments will increase consumption spending.
- AA) an increase and increase
- BB) a decrease, an increase
- CC) an increase, a decrease
- DD) a decrease, a decrease
14A decrease is social security payments will
- AA) decrease consumption spending
- BB) decrease investment spending
- CC) decrease government spending
- DD decrease export spending
15Decrease in the price level will
- AA) lower consumption because goods and services are less affordable
- BB) raise consumption because goods and services are more affordable
- CC) raise consumption because real wealth increases
- DD) lower consumption because real wealth decreases
16Which of the following will raise consumer expenditures
- AA) and increase in interest rates
- BB) a gerneral decline in housing prices
- CC) an increase in expected future income
- DD) an increase in price level
17The slope of the consumption function is equal to
- AA) the change in consumption divided by the change in disposable income
- BB) the change in consumption divided by the change in personal income
- CC)the change in disposbale income divided by the change in consumption
- DD) the change in national income divided by the change in consumption
18The marginal propensity to save is defined as
- AA) saving divided by disposable income
- BB) disposable income divided by saving
- CC) the change in saving divided by the change in disposible income
- DD) the change in disposable income divided by the change in saving
19Investment spending ____ during a recession and _____ during an expansion
- AA) declines, increases
- BB) increases, declines
- CC) increases, increases
- DD) declines, declines
20Consumer spending ___ and investment spending ____
- AA) is a very volatile and is subject to flux followed by a smooth trend
- BB) follows smooth trend is more volatile and subject to flux
- CC) follows smooth trend is urge most stable componet of aggregate expenditure
- DD) is very erratic, is also erratic but less erratics then consumer spending
21If planned aggregate expenditure is less than total production
- AA) actual inventories will equal planned inventories
- BB) firms will expirence an unplanned increase in inventories
- CC) GDP will increase
- DD)the economy is in equilibrium
22If planned aggregate expenditure is less then the total production
- AA) actual inventories will equal planned inventories
- BB) firms will expirence ab unplanned decrease in inventories
- CC) GDP will decrease
- DD) Households have increasingly pessimistic expectations about future income
23Which of the following leads to an increase in real GDP
- AA) a decrease in government spending
- BB) a decrease in the inflation rate in other countries, relative to the inflation in the U.S
- CC) a decrease in intrest rates
- DD)Households have increasingly pessimistic expectations about future income
24If planned aggregate expenditure is below potential GDP and planned aggregate expenditure equals GDP then
- AA) actual inventory investment will be less than planned inventory investment
- BB) ctual inventory investment will be greater than planned inventory investment
- CC) the economy is in recession
- DD) the economy is at full employment
25Assume that inventories declined more the analysis's predicted this implies that
- AA) planned aggregate was greater than real GDP
- BB) planned aggregate was equal to real GDP
- CC) planned aggregate was greater less than real GDP
- DD) planned aggregate was unrelated real GDP
26Planned aggregate expenditure is equal to
- AA) consumption spending only
- BB) consumption spending plus planned investment spending
- CC) planned investment spending only
- DD) consumption spending plus planned investment spending plus government purchases plus net exports
27If planned aggregate expenditure is greater than total production
- AA) actual inventories will equal planned inventories
- BB) firms will expirance unplanned increase in inventories
- CC) GDP will increase
- DD the economy is in equilibrium
28which of the following leads to a decrease real GDP
- AA) an increase in government spending
- BB) An increase in the inflation rate in other countries relative to the inflation in the U.S
- CC) an increase in interest rates
- DD) households have increasingly optimistic expections about future income
29If planned aggregate expentidture is above potential GDP and planned aggregate expenditure equals GDP then
- AA) actual inventory investment will be less then planned inventory investment
- BB) actual inventory investment will be greater then planned inventory investment
- CC) the economy is in an expansion
- DD) the economy is at full employment
30________ is equal to consumption spending plus planned investment spending plus government purchases plus net exports
- AA) full employment GDP
- BB) short run aggregate supply
- CC) planned inventory investment
- DD) planned aggregate expenditure
Información
- Descripción
- Test sobre Chapter 12, creado por sobe711 el 06/12/2014.
- Autor
- sobe711
- Idioma
- English
- Visitas
- 9
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