The difference between GDP and disposable income is
A) net taxes. B) unplanned investment spending.
C) national income. D) actual investment spending.
A
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The multiplier effect on real GDP occurs because
What will be an ideal response?
Refer to the information provided in Figure 24.1 below to answer the question(s) that follow.
Figure 24.1Refer to Figure 24.1. Injections = leakages
A. when consumption = saving. B. at equilibrium. C. when output = investment. D. when income = zero.
The largest component of aggregate expenditure in the United States is:
A. consumption. B. government purchases. C. exports. D. investment.
When the marginal propensity to consume (MPC) increases
A) the average propensity to save remains unchanged. B) the multiplier remains unchanged. C) the multiplier decreases. D) the multiplier increases.