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Question An improvement in consumer confidence will cause:

Question An improvement in consumer confidence will cause:

Question

An improvement in consumer confidence will cause:
The aggregate supply curve to shift to the right.
A movement down the aggregate demand curve.
The aggregate demand curve to shift to the right.
The aggregate demand curve to shift to the left.
If consumers spend 80 cents out of every extra dollar received, the:
MPC is 0.20.
Multiplier is 5.
Multiplier is 20.
MPS is 0.80.
Saving:
Is equal to income plus consumption.
Is the part of disposable income that is not yet spent.
Only includes dollars deposited in a financial institution.
Is a part of aggregate demand.
Which of the following could cause a recession?
An increase in aggregate supply
A decline in aggregate demand
A decline in unemployment
An increase in government spending
Figure 12.1

Assuming aggregate demand is represented by AD1, the equilibrium level of income in Figure 12.1 is:
$6.0 trillion.
$5.6 trillion.
$5.2 trillion.
$800 billion.
Which of the following is the largest component of aggregate demand for the U.S. economy?
Government expenditures
Consumption
Net exports
Business investment
According to Keynes, which of the following is possible at the intersection of aggregate supply and aggregate demand?
Inflation and high levels of unemployment, but not full employment
Full employment or high levels of unemployment, but not inflation
Inflation, full employment, or high levels of unemployment
Full employment, but not high levels of unemployment or inflation

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