Question : 14.2   Equilibrium Expenditure 1) The components of aggregate expenditure that not : 1240556

14.2   Equilibrium Expenditure

1) The components of aggregate expenditure that are not influenced by GDP are known as

A) unplanned expenditure.

B) induced expenditure.

C) planned expenditure.

D) autonomous expenditure.

E) fixed expenditure.

2) Autonomous expenditure is expenditure that is

A) influenced by real GDP.

B) influenced by the interest rate.

C) not influenced by real GDP.

D) not influenced by the interest rate.

E) not influenced by the price level.

3) The quantity of U.S. exports is determined by

A) U.S. GDP.

B) U.S. consumption expenditure.

C) political factors.

D) aggregate incomes in the rest of the world.

E) U.S. aggregate expenditure.

4) Autonomous expenditure includes

A) investment, government expenditure for goods and services, and imports.

B) consumption expenditures, investment, and exports.

C) consumption expenditure, investment, and imports.

D) investment, government expenditure on goods and services, and exports.

E) consumption expenditure, investment, and net taxes.

5) Induced expenditure is any expenditure that

A) is fixed for all levels of real GDP.

B) is fixed for all price levels.

C) is fixed for all levels of the interest rate.

D) changes when real GDP changes.

E) changes when the interest rate changes.

6) Induced expenditures are defined as that part of

A) aggregate expenditure that responds to changes in real GDP.

B) real GDP that does not respond to changes in aggregate expenditure.

C) aggregate expenditure that does not respond to changes in real GDP.

D) autonomous expenditure that responds to changes in real GDP.

E) autonomous expenditure that does not respond to changes in real GDP.

7) Which of the following increases as a result of an increase in real GDP?

i.autonomous expenditure

ii.induced expenditure

iii.potential GDP

A) i only

B) ii only

C) iii only

D) ii and iii

E) i, ii, and iii

8) Which aggregate expenditure categories are influenced by the level of real GDP?

A) investment and government expenditures on goods and services

B) consumption and investment

C) imports and exports

D) consumption and imports

E) consumption and government expenditures on goods and services

9) Induced expenditure includes

A) consumption expenditure, government expenditure on goods and services, and imports.

B) investment, consumption expenditures, and exports.

C) consumption expenditure and imports.

D) consumption expenditure and exports.

E) consumption expenditure and government expenditure on goods and services.

10) Which components of aggregate expenditure change as a result of real GDP changing?

A) consumption expenditure and imports

B) consumption expenditure and investment

C) consumption expenditure, investment, and exports

D) consumption expenditure, investment, and government expenditure on goods and services

E) consumption expenditure and government expenditure on goods and services