Macroeconomic

The federal government decreases spending by $44 billion dollars. This would cause a shift from

• AD 1 to AD 2

• AD 1 to AD 3

• AD 2 to AD 3

How much is MPS in an economy when MPC is .8?

• .2

• 3

• 1.6

• .8

The proportion of any change in income that is spent rather than saved is

• the multiplier

• income determinants

• marginal propensity to consume

• macroeconomic equilibrium

The federal government decreases spending by $44 billion dollars. This would cause a shift from

• AD 1 to AD 2

• AD 1 to AD 3

• AD 2 to AD 3

What would be the effect of an increase in imports?

• Increase AD

• Decrease AD

When income is $200 consumption is $140, and when income is $250 consumption is $180. The marginal propensity to save is

• 0.80

• 0.75

• 0.25

• 0.20

The slope of the consumption function is

• equal to the MPC and is equal to 1.

• equal to the MPC and is less than 1.

• not equal to the MPC and is less than 1.

• equal to the MPC and is greater than 1.

Cars, TVs, computers belong in which part of the GDP formula?

GDP = C+I+G+(X-M)

• Consumption Expenditures

• Investment Expenditures

• Government Expenditures

• Net Imports

1.How many approaches in calculating national income?

• 4

• 3

• 2

• 1

The equilibrium level of national income in a closed economy is where

• MPC = APC

• Consumption equals savings

• Aggregate expenditure equal National Income.

• Unemployment rate is about 3 percent of labour force.