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Macroeconomics Answer all 5 questions QUESTION 6 In the consumption function C = a + bYD, the value of a is determined in part by: O A. Disposable income. O B. The level of imports. OC. Consumer confidence. O D. All of the above. QUESTION 7 Which of the following is true about the consumption function C = a + byp O A. As a increases, the consumption function curve will shift down. O B. The larger the b, the steeper the consumption function curve. O C. b refers to the marginal propensity to consume. O D. All of the above O E. B and C. QUESTION 8 1. The components of aggregate demand are O A. Consumption, government spending, net exports, and investment. O B. Consumption, exports, imports, and disposable income. C. Consumption, inventory, government spending, and disposable income. D. Exports, imports, investment, and disposable income. QUESTION 9 A leftward shift in the aggregate supply curve should result in: higher price level and a lower real output. O A. lower price level and a lower real output. higher price level and a higher real output. OC lower price level and a higher real output. OD QUESTION 10 Aggregate Supply Aggiegale Supply Aggregate Demand Aggregate Demand (Jeftward) (nightward) (leftward) (nightward) Price Level Price Level Price Level Price Level Real Output Real Output Real Output Real Output (A) (B) (C) (D) Figure 8.6 Refer to Figure 8.6, which of the diagrams most likely illustrates the effect of the following event? In 2002 interest rates dropped to 47-year lows which decreased the cost of borrowing for businesses and consumers. OA. A. OB. B. OC. C. O D. D