Busy. Please wait.

show password
Forgot Password?

Don't have an account?  Sign up 

Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
We do not share your email address with others. It is only used to allow you to reset your password. For details read our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Didn't know it?
click below
Knew it?
click below
Don't know (0)
Remaining cards (0)
Know (0)
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

macro quiz 12

quiz 12 study flashcards

The aggregate expenditure model studies the relationship between: total spending and real GDP.
Which of the following statements is correct? Actual investment will equal planned investment only when there is no unplanned change in inventories.
When we say that the components of aggregate expenditure are measured in real terms, we mean that: The values represent quantities only, not prices.
The most important determinant of consumption is: Current disposable income
What is the impact of an increase in stock prices? An increase in the consumption component of aggregate expenditure.
If the marginal propensity to consume (MPC) is 0.9, how much additional consumption will result from an increase of $80 billion of disposable income? $800 billion.
Which of the following equalities is correct? Disposable income = National income – Net taxes.
When national income increases, there must be some combination of an increase in household: Consumption and saving.
The behavior of consumption and investment over time can be described as follows: Consumption follows a smooth, upward trend, but investment is subject to significant fluctuations.
Which of the following statements about investment spending is correct? The optimism or pessimism of business firms is an important determinant of investment spending, A higher real interest rate results in less investment spending, and When the economy moves into a recession.
Net exports have been __________ in most years between 1979 and 2009. Net exports have usually __________ when the U.S. economy is in recession and __________ when the U.S. economy is expanding. negative; decreased; increased
If inflation in the United States is lower than inflation in other countries, then U.S. exports ________ and U.S. imports ________, which _________ net exports. increase; decrease; increases
Find equilibrium GDP using the following macroeconomic model: C = 1000 + 0.75Y Consumption function I = 500 Investment function G = 600 Government spending function NX = −300 Net Export Function 7200
As long as the AE line is above the aggregate expenditure equals actual output (Y = AE) line: Inventories will decline and firms will expand production.
When aggregate expenditure is greater than GDP: Inventories will fall.
When the economy is in a recession, the shortfall in aggregate expenditure is exactly equal to: The unplanned increase in inventories.
What is the multiplier The multiplier is the ratio of the increase in equilibrium real GDP to the increase in autonomous expenditures.
The value of the multiplier is larger when: The value of the MPC is larger.
A curve showing the relationship between the price level and the level of aggregate expenditure in the economy, holding constant all other factors that affect aggregate expenditure is called: Aggregate demand.
Created by: carry



Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!

"Know" box contains:
Time elapsed:
restart all cards