#1
Which of the following is a component of aggregate expenditure?
Government spending
Personal savings
Imports
Corporate taxes
#2
What does C stand for in the equation AE = C + I + G + (X - M)?
Capital
Consumption
Current
Corporate
#3
In the aggregate expenditure model, what does I represent?
Investment
Imports
Interest rates
Inflation
#4
What is the main purpose of the aggregate expenditure model in macroeconomics?
To analyze individual consumer behavior
To determine the level of inflation in an economy
To understand the factors influencing total spending in an economy
To predict changes in exchange rates
#5
What does G represent in the equation for aggregate expenditure?
Government spending
Gross domestic product
Growth rate
Gross investment
#6
Which component of aggregate expenditure is directly influenced by changes in disposable income?
Investment
Government spending
Consumption
Exports
#7
If imports increase while exports remain constant, what happens to the balance of trade?
Trade deficit decreases
Trade deficit increases
Trade deficit remains the same
Trade surplus increases
#8
Which of the following is considered an autonomous component of aggregate expenditure?
Investment
Government spending
Consumption
Net exports
#9
How does an increase in taxes affect aggregate expenditure in the short run?
Aggregate expenditure increases
Aggregate expenditure decreases
Aggregate expenditure remains the same
Aggregate expenditure becomes negative
#10
What is the impact of a decrease in interest rates on investment?
Increase in investment
Decrease in investment
No impact on investment
Increase in government spending
#11
What happens to aggregate expenditure when there is a decrease in consumer confidence?
Aggregate expenditure increases
Aggregate expenditure decreases
Aggregate expenditure remains the same
Aggregate expenditure becomes negative
#12
What is the relationship between the marginal propensity to consume (MPC) and the multiplier effect?
They are inversely related
They are directly proportional
They are not related
They have a nonlinear relationship
#13
Which of the following would lead to an increase in net exports?
Domestic currency appreciates
Foreign demand decreases
Imports increase more than exports
Exports decrease more than imports
#14
In the aggregate expenditure model, what happens when planned investment exceeds actual investment?
There is an increase in GDP
There is a decrease in GDP
GDP remains unchanged
There is a decrease in government spending
#15
What happens to the multiplier effect when leakages from the economy increase?
The multiplier effect increases
The multiplier effect decreases
There is no impact on the multiplier effect
The multiplier effect becomes negative