Chapter 14The Aggregate Expenditure Model

Mid-Term Exam

1、单选题:
       Which of the following is not a part of aggregate demand?  ‎
选项:
A: Consumption expenditures
B: National income.
C: Government purchases of goods and services
D: Investment expenditures
答案: 【 National income.

2、单选题:
‌If a $10 billion increase in disposable income results in an $8 billion increase in consumption spending, then the marginal propensity to consume is‍
选项:
A: 0.2
B: 0.5
C: 0.8
D: 1.0
答案: 【 0.8

3、单选题:
‎When aggregate demand is less than output‍
选项:
A: Inventories are likely to be increasing.
B: Inventories are likely to be decreasing.
C: There will be a downward shift in the expenditure schedule.
D: Firms are likely to raise prices.
答案: 【 Inventories are likely to be increasing.

4、单选题:
‌If the marginal propensity to consume is 0.75, what decrease in taxes will initially increase consumption spending by $15 billion?​
选项:
A: $11.25 billion
B: $15 billion
C: $20 billion
D: $60 billion
答案: 【

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