1.)

If the marginal propensity to consume is 0.75 and investment spending increases by $200 billion, equilibrium GDP will increase by____.

	$350 billion
	$150 billion
	$200 billion
	$266.7 billion
	$800 billion

2.)

AE = 3000 + 0.75*RGDP. Given this equation for AE, find equilibrium GDP

	$1,000
	$750
	$12,000
	$2,250

3.)

The four components of aggregate planned expenditure are

	the real interest rate, disposable income, wealth, and expected future income
	the real interest rate, consumption expenditure, investment, and government expenditures
	consumption expenditure, investment, government expenditures, and wealth
	consumption expenditure, investment, government expenditures, and net exports

4.)

When disposable income decreases

	the consumption function shifts up
	there is a rightward movement along the consumption function
	the consumption function shifts down
	there is a leftward movement along the consumption function

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