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ECON-1012-B-Introduction to Macroeconomics

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In an economy with a fixed price level, which of the following events would increase equilibrium real GDP?
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Fact 11.5.1

An economy has a consumption function of C = 10 + 0.8Y, investment equal to 6, government expenditure equal to 10, exports equal to 10, and an import function of M = 0.1Y.

Refer to Fact 11.5.1. If autonomous consumption increases by 10, what is the new equation of the AE curve for this economy?
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 Table 11.1.3
 
Disposable Income

(dollars)		Consumption Expenditure

(dollars)
0100
100165
200230
300295
400360

In Table 11.1.3, at which of the following values of disposable income is there positive saving? At which of the following values of disposable income is there positive saving?
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Short Description: A line graph shows the relationship between consumption expenditure and disposable income for an economy. Long Description: The vertical axis is labelled, consumption expenditure (billions of 20 12 dollars per year) and ranges from 0 to 800. The horizontal axis is labelled, disposable income (billions of 20 12 dollars per year) and ranges from 0 to 800. The 45 degree line slopes upward from the origin and passes through the points B (200, 200), D (250, 250), and (500, 500). The line for consumption function slopes upward from (0, 100) and passes through the point (200, 250). The line intersects the 45 degree line at (500, 500).

Figure 11.5.1

Refer to Figure 11.5.1, which shows the consumption function. Which of the following equations is the consumption function?
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Why is the multiplier greater than 1?

An increase in autonomous expenditure increases real GDP, which
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Which of the following items limits the use of discretionary fiscal policy?
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Which of the following outcomes happens automatically when the economy goes into a recession? 
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An economy has the following government revenues and outlays: $25 million in personal income taxes, $15 million in corporate income taxes, $5 million in indirect taxes, $2 million in investment income, $30 million in transfer payments, $12 million in government expenditure, and $8 million in debt interest. What is the government budget balance?
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During a recession, how does the government budget change?
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Which of the federal government's revenues fluctuates the most?
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