Economics-Macroeconomics

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Quiz 11 :

Expenditure Multipliers

Quiz 11 :

Expenditure Multipliers

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Disposable income is
Free
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Answer:

B

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The consumption function relates consumption expenditure to
Free
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B

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The Keynesian model of aggregate expenditure assumes that
Free
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Answer:

C

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In the very short term, planned investment ________ when GDP changes and planned consumption expenditure ________ when GDP changes.
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In the very short term, in the Keynesian model, which of the following is fixed and does not change when GDP changes?
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An increase in real GDP leads to
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In the Keynesian model of aggregate expenditure, real GDP is determined by the
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Which of the following statements is FALSE?
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Consumers divide disposable income into
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The Keynesian model of aggregate expenditure describes the economy in
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Real GDP
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In the very short run, the components of aggregate planned expenditure that depend on the level of real GDP are
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According to the Keynesian theory, the typical firm
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The components of aggregate expenditure include I. imports. II. consumption. III. government transfer payments.
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In the Keynesian model of aggregate expenditure, we assume that firms will
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The consumption function relates the consumption expenditure decisions of households to
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Saving equals
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A consumption function shows a
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Disposable income is equal to
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If firms set prices and then keep them fixed for a period of time, their fixed prices imply that
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