When the real GDP increases,

Question 1

2.5 Points

When the real GDP increases, disposable income and consumption expenditure __________.

[removed] A. do not change
[removed] B. become inverted
[removed] C. decrease
[removed] D. increase

Question 2

2.5 Points

A rise in the price level __________ the buying power of money.

[removed] A. does not affect
[removed] B. increases
[removed] C. decreases
[removed] D. inverts

Question 3

2.5 Points

How does an increase in potential GDP affect aggregate supply?

[removed] A. It decreases aggregate supply.
[removed] B. It increases aggregate supply.
[removed] C. It barely has any effect.
[removed] D. Since it applies to an “imaginary” market, it does not affect aggregate supply.

Question 4

2.5 Points

__________ occurs when aggregate planned expenditure equals real GDP.

[removed] A. Price-fixing
[removed] B. Stable economic leveling
[removed] C. Unplanned inventory change
[removed] D. Equilibrium expenditure

Question 5

2.5 Points

Aggregate __________ is the sum of planned consumption expenditure, investment, government expenditure on goods and services, and exports minus imports.

[removed] A. planned expenditure
[removed] B. supply
[removed] C. demand
[removed] D. expenditure schedule

Question 6

2.5 Points

When governments change taxes, their transfer payments, and expenditure on goods and service, they influence aggregate demand through __________.

[removed] A. the world economy
[removed] B. consumer expectations
[removed] C. monetary policy
[removed] D. fiscal policy

Question 7

2.5 Points

If the price level from the GDP price index falls, what happens to the quantity of real GDP supplied?

[removed] A. it remains constant
[removed] B. it increases
[removed] C. it decreases
[removed] D. it barely changes

Question 8

2.5 Points

Which of the following would cause an increase in aggregate demand in the short run?

[removed] A. an increase in the supply of money
[removed] B. a decrease in the price level
[removed] C. an increase in taxes
[removed] D. a crop failure

Question 9

2.5 Points

What is the total amount of final goods and service produced in a country that people, businesses, governments, and foreigners plan to buy?

[removed] A. the supply-demand model
[removed] B. the quantity of real GDP supplied
[removed] C. the quantity of potential GDP
[removed] D. the quantity of real GDP demanded

Question 10

2.5 Points

The __________ is the amount by which a change in autonomous expenditures is multiplied in order to determine the change in equilibrium expenditure that it generates.

[removed] A. marginal tax rate
[removed] B. marginal multiplier
[removed] C. expenditure reducer
[removed] D. expenditure multiplier

12 years ago

Report issue

When the real GDP increases,

NOT RATED

Purchase the answer to view it

when_the_real_gdp_increases.docx