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ECON-1012-B-Introduction to Macroeconomics

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The fact that imports increase as real GDP increases implies that imports are part of which of the following variables?
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In an economy with a fixed price level, autonomous spending is $20 trillion and the slope of the AE curve is 0.8. What are equilibrium expenditure and the multiplier?

Equilibrium expenditure is ________. The multiplier is ________.
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 Table 11.3.1
 
Real GDP

(billions of 2012 dollars)		Aggregate planned expenditure

(billions of 2012 dollars)
0100
200260
400420
600580
800740

Refer to Table 11.3.1, which shows aggregate planned expenditure and real GDP in an economy. What is the economy's autonomous expenditure?
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If consumption expenditure increases by $500 million when real GDP increases by $1 billion, which of the following terms describes this change in consumption expenditure?
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Short Description: A line graph shows the relationship between consumption expenditure and disposable income for an economy. Long Description: The vertical axis is labelled, consumption expenditure (20 12 dollars) and ranges from 0 to 800. The horizontal axis is labelled, disposable income (20 12 dollars) and ranges from 0 to 800. The 45 degree line slopes upward from the origin and passes through the point (800, 800). The line for consumption function slopes upward from (0, 200) and passes through the point (800, 800) intersecting the 45 degree line at this point. A dashed vertical line is drawn from this point to (800, 0) on the horizontal axis.

Figure 11.1.2

Refer to Figure 11.1.2, which shows an economy's consumption function. What is autonomous consumption?
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An economy with a fixed price level has a consumption function of C = 10 + 0.6Y, investment equal to 10, government expenditure equal to 15, exports equal to 10, and an import function of M = 0.2Y. What is equilibrium real GDP in this economy?
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You observe that unplanned inventories are increasing. Which of the following events do you predict will occur?
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An economy with a fixed price level has a consumption function of C = 10 + 0.6Y, investment equal to 10, government expenditure equal to 15, exports equal to 10, and an import function of M = 0.2Y. If investment increases to 20, what is the equation for the AE curve for this economy?
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As real GDP varies, which of the following terms equals the change in consumption expenditure minus imports?
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Fact 11.5.1

An economy has a consumption function of C = 10 + 0.8Y, investment equal to 6, government expenditure equal to 10, exports equal to 10, and an import function of M = 0.1Y.

Refer to Fact 11.5.1. What is the multiplier for this economy?
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