The average propensity to consume when the disposable income is $500 billion is equal to: OA.
Question 9 options:
0.95.
0.100.
0.70.1.1
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Question 10 (1 point)
Current disposable income held to buy consumption goods in the future is referred to as:
Question 10 options:Future savings.
autonomous consumption.
saving.
future consumption.
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Question 11 (1 point)
Suppose that an economy is in equilibrium at a real GDP of $15 trillion at a price level of 100. An increase in autonomous expenditures of $0.30 trillion takes place. The current multiplier is 5. If the short run aggregate supply curve is horizontal the new equilibrium value of real GDP will be:
Question 11 options:16.50 trillion1.500.3015.30
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Question 12 (1 point)
Suppose that an economy is in equilibrium at a real GDP of $ 15 trillion at a price level of 100. The short run aggregate supply curve is upward sloping and there is an increase in autonomous expenditures of $0.30 billion. This increase in expenditures enabled the real GDP to increase to $15.50 trillion. The change in the price level has changed the multiplier to:
Question 12 options:4.424.701.6672.944
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