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linda_us, Master's Degree
Category: Multiple Problems
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Experience:  A tutor for Business, Finance, Accounts and other related topics.
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for lindaQuestion 1 Given AE = $1,000 + .8Y, when income

Resolved Question:

for linda

Question 1
Given AE = $1,000 + .8Y, when income equals $6,000, expenditures will be:

A. $4,000.

B. $4,800.

C. $5,800.

D. $6,000.
Question 2
In the multiplier model, aggregate expenditure equals:

A. autonomous expenditures.

B. induced expenditures.

C. the sum of autonomous and induced expenditures.

D. the difference between autonomous and induced expenditures.

Question 3
If autonomous expenditures are $1,000, income is $5,000 and the marginal propensity to expend is 0.6, then total expenditures according to the expenditure function would be:

A. $3,000.

B. $4,000.

C. $5,000.

D. $13,500.

Question 4
The multiplier process works because when expenditures don't equal production:

A. businesses adjust prices.

B. businesses adjust production.

C. potential output adjusts.

D. the government steps in to adjust production.

Question 5
The multiplier equation is:

A. AE = AE0 + mpe Y.

B. Y = 1/(1 - mpe).

C. Y = AE0 [1/(1 - mpe)].

D. AE = C + I + G + (X - M).

Question 6
The change in expenditures produced by the multiplier effect is really a change in:

A. induced expenditures.

B. autonomous expenditures.

C. exogenous expenditures.

D. the marginal propensity to consume.
Submitted: 5 years ago.
Category: Multiple Problems
Expert:  linda_us replied 5 years ago.
linda_us and other Multiple Problems Specialists are ready to help you
Customer: replied 5 years ago.
for linda
did you get the second set of questions?