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ECON-1012-B-Introduction to Macroeconomics

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How does an increase in autonomous expenditure change the AE curve?
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 Table 11.1.1
 
YD

 (dollars)		C

 (dollars)
100225
200300
300375
400450
500525
600600

Refer to Table 11.1.1, which shows the relationship between consumption expenditure (C) and disposable income (YD) for an economy. What is the marginal propensity to save?
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0%
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0%
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 Table 11.1.1
 
YD

 (dollars)		C

 (dollars)
100225
200300
300375
400450
500525
600600

Refer to Table 11.1.1, which shows the relationship between consumption expenditure (C) and disposable income (YD) for an economy. At which disposable income is saving $125?
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When an unplanned decrease in inventories occurs, which of the following events occurs?

Aggregate planned expenditure
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Short Description: A line graph of aggregate planned expenditure versus real G D P. Long Description: The vertical axis is labelled, aggregate planned expenditure (billions of 20 12 dollars) and ranges from 0 to 400 in increments of 100. The horizontal axis is labelled, real G D P (billions of 20 12 dollars) and ranges from 0 to 400 in increments of 100. The 45 degree line slopes upward from the origin passing through the points (100, 100), (200, 200), and (300, 300). The line for C slopes upward from the point (0, 25) on the vertical axis intersecting the 45 degree line at (100, 100). The line for C + I slopes upward from the point (0, 50) on the vertical axis passing through the points (100, 125), (200, 200), and (300, 275).

Figure 11.3.1

Refer to Figure 11.3.1, which shows an economy's consumption expenditure (C) and investment (I). If the economy does not engage in international trade and has no government, what is the slope of the AE curve in this economy?
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If the marginal propensity to save is 0.2, which of the following statements is correct?
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Which of the following situations occurs at equilibrium expenditure?
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When firms reduce their target level of inventories, how do equilibrium expenditure and real GDP change?

Equilibrium expenditure ________ and real GDP ________.
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Which of the following events will increase in the slope of the AE curve? 
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 Table 11.1.1
 
YD

 (dollars)		C

 (dollars)
100225
200300
300375
400450
500525
600600

Refer to Table 11.1.1, which shows the relationship between consumption expenditure (C) and disposable income (YD) for an economy. When disposable income is zero, which of the following outcomes occurs?
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0%
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