Macroeconomics Quiz 3

[Picture] Refer to the above diagram for a private closed economy. The equilibrium level of GDP is:

$300.

[Picture] In the above diagram, the economy's short-run aggregate supply curve is shown by line:

*NOT* 3 OR 4

Answer the question on the basis of the following data for a private closed economy. [Picture] Refer to the above data. At the $370 billion level of DI the APS is approximately:

.04

If the marginal propensity to consume is 0.9, then the marginal propensity to save must be:

0.1

Answer the question on the basis of the following data for a private closed economy. [Picture] Refer to the above data. The MPS is:

3/10.

[Picture] An decrease in aggregate demand is illustrated by a movement from:

AD2 to AD1.

John Maynard Keynes created the aggregate expenditures model based primarily on what historical event?

Great Depression

The 45-degree line on a graph relating consumption and income shows:

all the points at which consumption and income are equal.

A decrease in the short-run aggregate supply curve is represented as a shift ________.

leftward.

[Picture] In the above diagram, a shift from AS3 to AS2 might be caused by an increase in:

productivity.