Exploring Macroeconomics
Exploring Macroeconomics
7th Edition
ISBN: 9781285859446
Author: Sexton, Robert L.
Publisher: Cengage Learning
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Chapter 15, Problem 3P
To determine

(a)

To explain:

Whether an increase in positivity of consumer will increase the aggregate expenditure.

To determine

(b)

To explain:

Whether an increase in purchase of imports will increase the aggregate expenditure.

To determine

(c)

To explain:

Whether an increase in sales of exports will increase the aggregate expenditure.

To determine

(d)

To explain:

Whether pessimism by business owners will increase the aggregate expenditure.

To determine

(e)

To explain:

Whether an increase in government spending will increase the aggregate expenditure.

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At any given amount of income, an increase in consumption will result in a. A rise in total demand b. A boost in exports c. Decrease in tax revenue d. A reduction in the amount of money spent on imports
Consider the circular flow of expenditure and income in the Canadian economy. Which of the following is an injection into the circular flow? Select one: a. You make an online purchase from a U.S. retailer. b. Loblaws pays corporate income tax to the federal government. c. Bombardier exports subway cars to Mexico. d. Bombardier imports machine parts from Germany. e. You put $500 into your TFSA (tax-free savings account).
Which of the following components of aggregate expenditure is most subject to crowding out? a. Consumption expenditures b. Government purchases of goods and services c. Imports d. Investment spending e. National saving
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