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Q: A change in the price level will cause a shift in the expenditure schedule. True or False
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Q: a. Copy and paste table above and fill in aggregate demand (AD). b. Derive the consumption function.
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Q: Find the value of aggregate supply when the consumption expenditure is $2000 and saving are $400
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Q: If the consumption is 450 and the investment is 240 find the aggregate demand
A: Aggregate demand (AD)= Consumption +Investment +Government spending +(Export-Import)
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- The components of aggregate demand are: The components of aggregate demand are: A. consumption, investment, government and exports B. consumption, investment, government and imports C. consumption, investment, government and net exports D. consumption, investment, and net exports, since only private expenditures are includedWhich of the following will increase consumption spending? Group of answer choices a housing market crash an increase in the personal income tax rate a boom in the stock market an increase in the nominal interest rateThe French economist Jean-Baptiste Say trans- formed the equality of total output and total spending into a law that can be expressed asa. unemployment is not possible in the short run.b. demand and supply are never equal.c. supply creates its own demand.d. demand creates its own supply.
- suppose the government in this economy decides to decrease government purchases by 300 billion decrease in government purchases will lead to a decrease in income generating an initial change in consumption equal toFind the aggregate supply when the aggregate demand is given as $888 billion.Q. Q1. Which of the following components of consumption spending typically sees the largest decline in demand during a recession? automobiles food clothing housing .
- Which of the following would not increase Aggregate Demand? a. Increased Consumption b. Increased Government Expenditure c. Increased Investment Expenditure d. Decrease in the overall price levelAn increase in the interest rate would shift the consumption function upward. True or FalseOne of the following cannot be considered as a factor that affect consumption Select one: a. Price expectations b. None of the options are correct c. Wealth d. Interest rates
- The following are the components of aggregate demand EXCEPT, A) government spending. B) consumption of households. C) investment by firms. D) household saving.Identify the direction of the change during a recession in each of the following: consumption expenditures, investment expenditures, and unemployment.If investment increases by $50 billion, by how much will aggregate demand change? Aggregate demand will _______. A. increase by less than $50 billion because there will be fewer goods and services produced for consumption expenditure B. increase by more than $50 billion because the increase in aggregate income induces an increase in consumption expenditure C. probably decrease by $50 billion, but it depends on the change in aggregate supply D. increase by exactly $50 billion because investment is a component of aggregate demand