Exploring Macroeconomics
7th Edition
ISBN: 9781285859446
Author: Sexton, Robert L.
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
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.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
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
Chapter 15 Solutions
Exploring Macroeconomics
Knowledge Booster
Similar questions
- Which of the following is an example of an expenditure-increasing policy? a. a decrease in import quotas b. an increase in the money supply c. an increase in import tariffs d. higher income taxesarrow_forwardWhich of the following is a leakage from the circular flow of income and expenditure in South Africa? Select one: a. A decision by a major supermarket chain to sell Danish beer. b. The sale of export fruit to the European Union. c. Government purchases of textbooks for state-run schools. d. Investment by South African Breweries in a new brewery. e. Defence expenditure by the South African government, via contracts with local military suppliers.arrow_forwardWhat is the equilibrium in this economy? Planned Change in Net Exports (NX) Aggregate Expenditures (AE) Government Real GDP (Y) Consumption (C) Investment (1')| Purchases (G) Inventories 1500 1100 250 1600 1175 100 1700 1250 1800 1900 2000 75 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 1500 b 1600 1700 d. 1800arrow_forward
- How will an increase in taxes applied to businesses affect the GDP based on the Expenditure Approach? a. Negative effect on net exports b. Negative effect on the gross domestic capital formation c. Increase in government’s budget d. Positive effect on private consumptionarrow_forwardHow increasing housing prices in the US to its highest historical levels affect the US economy and the four components of expenditures of GDP.arrow_forwardHelp in less than 10 minsarrow_forward
- Which of the following will not cause an increase in equilibrium GDP? a) an increase in government expenditure on health care b) an increase in income tax rates c) an increase in exports to the EU d) an increase in domestic consumption expenditurearrow_forwardWhy are changes in inventories included as part of investment spending? Suppose inventories declined by $1 billion during 2008. How would this affect the size of gross private domestic investment and gross domestic product in 2008? Explain.arrow_forward1.If the real GDP is 1000 and Investment is 150, Government Spending is 250 and Net Exports equals -100, then Consumption must be?arrow_forward
- Question attahed in imagearrow_forwardSelect the correct one.arrow_forwardpaper a pen and a calculator in order to solve the fo Problem 1 The various expenditure categories within the economy are: C = 600+ 0.8Yd | - 800 G = 600 NX = 0 T = 700 Refer to problem 1. Equilibrium Real GDP is *arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning