Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
|
A decrease in ________ can put your job at risk if aggregate expenditures fall. |
Consumer Confidence |
|
|
A decrease in the real interest rate will |
most likely increase consumer's purchases of durable goods. |
|
|
An example of assets that are included in ________ would be stocks, bonds, and savings accounts. |
household wealth |
|
|
An increase in Social Security payments will |
increase consumption spending. |
|
|
An increase in taxes will ________ consumption spending, and a decrease in transfer payments will ________ consumption spending. |
decrease; decrease |
|
|
An unplanned decrease in inventories results in |
actual investment that is less than planned investment. |
|
|
At macroeconomic equilibrium, total ________ equals total ________. |
spending; production |
|
|
Consumption is $5 million, planned investment spending is $8 million, government purchases are $10 million, and net exports are equal to $2 million. If GDP during that same time period is equal to $23 million, what unplanned changes in inventories occurred? |
There was an unplanned decrease in inventories equal to $2 million. |
|
|
Consumption spending is $5 million, planned investment spending is $8 million, unplanned investment spending is $2 million, government purchases are $10 million, and net export spending is $2 million. What is aggregate expenditure? |
$25 million |
|
|
Consumption spending is $5 million, planned investment spending is $8 million, actual investment spending is $8 million, government purchases are $10 million, and net export spending is $2 million. Based on this information, which of the following is true? |
Aggregate expenditure is equal to GDP. |
