Macroeconomics: Expenditure and Income pg 896-943 q. 0-145

According to national income and product accounts, what type of expenditures are measured for consumption, investment, government purchases, and net exports?

What does desired expenditure represent for firms or individual households?

In the simple macroeconomic model, what is the defining characteristic of autonomous expenditures?

Under what condition is undesired inventory accumulation likely to occur?

When is undesired or unplanned inventory decumulation likely to take place?

How do national income accounts and theoretical economic models differ in their treatment of expenditures?

What does the equation AE = C + I + G + (X - IM) represent in macroeconomics?

What does the consumption function describe in macroeconomics?

What is generally assumed to happen to aggregate desired consumption and saving as real disposable income rises based on the consumption function?

In a simple macro model, how is an increase in households' wealth generally expected to affect the aggregate consumption function?

How is a decrease in households' wealth generally assumed to affect the consumption function in a simple macro model?

In a simple macro model without taxes, what is the implication at the level of national income where the average propensity to consume (APC) equals 1?

Consider a consumption function of the form: C = 50 + (0.6)YD. At what level of disposable income (YD) will desired savings be equal to zero?

What key information does the 45-degree line provide on a graph of a consumption function?

What can be inferred if the consumption function coincides with the 45-degree line?

If a family's annual disposable income rose from $60,000 to $65,000 and their desired consumption expenditures rose from $50,000 to $54,000, what can be concluded about the family's spending behavior?

What does 'marginal propensity to consume' refer to?

If the marginal propensity to consume (MPC) is equal to 0.9, how does an increase in household income affect desired consumption expenditure?

Which of the following must be true in the simple macro model?

If the Jones family's disposable income increases from $1200 to $1700 and their desired saving increases from -$100 to +$100, what is the family's marginal propensity to consume?

If, in a simple model of the economy without government or taxes, there is a shock that causes an upward shift of the aggregate consumption function, what corresponding shift occurs in the saving function?

How are desired consumption and desired saving related to disposable income?

Which of the following changes would generally cause desired investment expenditure to fall?

What factors will cause a shift of the investment function, assuming desired investment is autonomous with respect to national income?

Changes in investment are ________ associated with business-cycle fluctuations.

How does a rise in the real rate of interest affect the opportunity cost of holding inventory and desired investment expenditure?

Which of these is the largest component of domestic investment expenditure in Canada?

How do higher real interest rates generally influence the components of desired investment expenditure?

In the simplest macroeconomic model with a closed economy and no government, what does the aggregate expenditure (AE) function represent?

Suppose that desired investment is autonomous with respect to national income in the simplest macroeconomic model with a closed economy and no government. What slope will the investment function have?

What is the function relating the level of desired total expenditures to the level of actual national income?

How is the marginal propensity to spend best defined?

How will an increase in the marginal propensity to spend out of national income affect the aggregate expenditure (AE) curve?

Assuming the AE0 is the prevailing aggregate expenditure function, what factor does the distance 0A measure?

In a demand-determined model of the macro economy, what assumption is made about the price level?

What occurs if, with national income at Y1 and the aggregate expenditure function at AE1, desired aggregate expenditure exceeds income?

Based on the aggregate expenditure (AE) function being an upward-sloping curve, what does it describe?

What happens to firms if actual national income is $900 billion, but desired consumption plus desired investment amounts to $920 billion.

How do economists estimate the effect of a given change in desired investment on equilibrium national income using the simple macro model?

What is the simple multiplier equal to, where z equals the marginal propensity to spend?

Which expenditures are measured for consumption, investment, government purchases, and net exports in national income and product accounts?

What is the defining characteristic of autonomous expenditures in the simple macroeconomic model?

When is undesired inventory accumulation likely to occur?

When is undesired inventory decumulation likely to take place?

What is generally assumed to happen to aggregate desired consumption and saving as real disposable income rises?

In a simple macro model, how is an increase in households' wealth generally assumed to affect the aggregate consumption function?

In a simple macro model, how is a decrease in households' wealth generally assumed to affect the consumption function?

Consider the consumption function in a simple macro model with no taxes. At the level of national income where APC = 1, the nation's households are:

Refer to Figure 21-1. The APC will be equal to one (1.0) when disposable income is equal to

Refer to Figure 21-1. If disposable income is equal to Y3, desired consumption expenditure is equal to

Refer to Figure 21-1. The marginal propensity to consume is equal to

Refer to Figure 21-1. If disposable income is Y3, the level of desired saving is

Refer to Figure 21-1. The marginal propensity to save can be expressed as

Refer to Figure 21-1. Desired consumption expenditures will equal disposable income at an income level of

Refer to Figure 21-1. If disposable income is zero, then

Refer to Figure 21-2. If disposable income is $3000, desired consumption expenditure is equal to

Refer to Figure 21-2. The APC will be equal to one (1.0) when disposable income is

Refer to Figure 21-2. Which of the following is the correct equation for the consumption function depicted in the figure?

Refer to Figure 21-2. The slope of the consumption function in the figure is equal to

Refer to Figure 21-2. The amount of desired consumption expenditure that is unrelated to the level of disposable income is

Consider a consumption function of the following form: $C = 50 + (0.6)Y_D$. At what level of disposable income will desired savings be equal to zero?

On a graph of a consumption function, what is the significance of the 45-degree line?

If the consumption function coincides with the 45-degree line, then we know that

Consider a consumption function that is upward sloping but flatter than the 45-degree line. When real disposable income rises:

If a family's annual disposable income rose from $60,000 to $65,000 and their desired consumption expenditures rose from $50,000 to $54,000, it can be concluded that the family's:

Refer to Table 21-1. The marginal propensity to consume is equal to

Refer to Table 21-1. The marginal propensity to save is equal to

Desired consumption divided by disposable income is called the

Desired consumption expenditure divided by disposable income is called the

The "marginal propensity to consume" refers to the additional

The change in desired consumption divided by the change in disposable income that brought it about is called the:

The marginal propensity to consume is defined to be

If the marginal propensity to consume (MPC) is equal to 0.9, an increase in household income causes desired consumption expenditure to

How does desired expenditure relate to planned spending for firms or individual households?

Why are 'autonomous expenditures' significant in the simple macroeconomic model?

Under what circumstances is a firm most likely to reduce its production levels?

In what way do national income accounts and theoretical economic models differ concerning expenditures?

What is the significance of the equation AE = C + I + G + (X - IM) in macroeconomics regarding economic output?

How does the aggregate consumption function respond to changes in real disposable income, and what is the consequence?

How does a significant increase in aggregate household wealth typically influence the aggregate consumption function, and why?

How do households behave when their average propensity to consume (APC) equals 1 in a simple macro model without taxes?

Assuming the consumption function is upward sloping, what happens when an individual's real disposable income increases?

How would you characterize a family's consumption behavior if an increase in their annual disposable income from $60,000 to $65,000 results in a rise in their desired consumption expenditures from $50,000 to $54,000?

What does the 'marginal propensity to consume' (MPC) measure in economics?

Suppose there is an upward shift in the aggregate consumption function due to external factors. How does this shift affect the saving function?

How do changes in business sentiment and expected economic conditions generally influence desired investment expenditure?

How does heightened volatility in business cycles affect the components of investment expenditure?

If the real interest rate rises, how does this change firms' decisions regarding inventory and capital investment?

In the simplest macroeconomic model with no government and a closed economy, what does the Aggregate Expenditure (AE) function include?

What characterizes the slope of the investment function in a simple macro model where desired investment is considered autonomous relative to national income?

How does an increase in the marginal propensity to spend (z) affect the aggregate expenditure (AE) curve?

Assuming a demand-determined model, what market dynamics occur if the desired aggregate expenditure exceeds actual national income?

What is the result of an increase in autonomous expenditure (A) on total equilibrium income (Y)?