Question 1 of 40 2.5 Points When the real GDP increases, disposable income and consumpt

Question 1 of 40 2.5 Points
When the real GDP increases, disposable income and consumption expenditure __________.

A. do not change

B. become inverted

C. decrease

D. increase

Question 2 of 40 2.5 Points
A rise in the price level __________ the buying power of money.

A. does not affect

B. increases

C. decreases

D. inverts

Question 3 of 40 2.5 Points
How does an increase in potential GDP affect aggregate supply?

A. It decreases aggregate supply.

B. It increases aggregate supply.

C. It barely has any effect.

D. Since it applies to an “imaginary” market, it does not affect aggregate supply.

Question 4 of 40 2.5 Points
__________ occurs when aggregate planned expenditure equals real GDP.

A. Price-fixing

B. Stable economic leveling

C. Unplanned inventory change

D. Equilibrium expenditure

Question 5 of 40 2.5 Points
Aggregate __________ is the sum of planned consumption expenditure, investment, government expenditure on goods and services, and exports minus imports.

A. planned expenditure

B. supply

C. demand

D. expenditure schedule

Question 6 of 40 2.5 Points
When governments change taxes, their transfer payments, and expenditure on goods and service, they influence aggregate demand through __________.

A. the world economy

B. consumer expectations

C. monetary policy

D. fiscal policy

Question 7 of 40 2.5 Points
If the price level from the GDP price index falls, what happens to the quantity of real GDP supplied?

A. it remains constant

B. it increases

C. it decreases

D. it barely changes

Question 8 of 40 2.5 Points
Which of the following would cause an increase in aggregate demand in the short run?

A. an increase in the supply of money

B. a decrease in the price level

C. an increase in taxes

D. a crop failure

Question 9 of 40 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?

A. the supply-demand model

B. the quantity of real GDP supplied

C. the quantity of potential GDP

D. the quantity of real GDP demanded

Question 10 of 40 2.5 Points
The __________ is the amount by which a change in autonomous expenditures is multiplied in order to determine the change in

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