The table gives the components of aggregate planned expenditure in the economy of Sher. Equilibrium expenditure occurs when real GDP equals _________.

£5 billion
£2 billion
£2.5 billion
£3 billion

The table gives the components of aggregate planned expenditure in the economy of Sher. Autonomous expenditure is ___________ and the slope of the aggregate expenditure curve is __________.

zero; 0.3
£0.9 billion; 0.7
£3 billion; 0.7
£2.4 billion; 0.3

The table gives the components of aggregate planned expenditure in the economy of Sher. If investment increases by £0.3 billion, equilibrium expenditure increases to _____________ and the multiplier is _______________.

£2 billion; -10/3
£3.5 billion; 5/3
£3 billion; 0
£4 billion; 10/3

The table gives the components of aggregate planned expenditure in the economy of Sher. The multiplier is __________, and for equilibrium expenditure to decrease by £1 billion, autonomous expenditure must decrease by ______________.

3.3; £0.3 billion
1; £1 billion
zero; £1 billion
0.3; £0.3 billion

The figure shows the economy of Tropical Isle. The price level is 100. When aggregate planned expenditure equals 25 billion seashells, aggregate planned expenditure is _______ than real GDP and there is an unplanned _______ in inventories and real GDP will ___________.

greater; decrease; increase
greater; increase; decrease
less; decrease; increase
less; increase; decrease

An increase in autonomous expenditure will _______ the aggregate expenditure curve and an increase in the marginal propensity to save will _______ the aggregate expenditure curve, all other things remaining the same.

shift; shift
shift; decrease the slope of
increase the slope of; decrease the slope of
increase the slope of; shift

The _______ the marginal propensity to consume, the _______ is the slope of the aggregate expenditure curve and the _______ is the multiplier.

larger; lower; larger
larger; greater; larger
larger; greater; smaller
smaller; greater; larger

The multiplier is 1.5. A decrease in investment of £5 billion will shift the aggregate demand curve __________ by _______________.

leftward; £5 billion
rightward; less than £5 billion
leftward; £7.5 billion
leftward; less than £5 billion

The multiplier is 1.5. If investment decreases by £5 billion and the SAS curve slopes upward, then in the short run, equilibrium expenditure will decrease by __________________.

£7.5 billion
£5 billion
more than £7.5 billion
less than £7.5 billion

An economy is at point a in the figure. Investment increases. The economy will move to point _______ in the short run and to point _______ in the long run.

b; c
b; a
d; a
d; c