Chapter 6

Question 1

Aggregate expenditure

Answer 1

C+I+G+(X−IM)

Question 2

Average propensity to consume

Answer 2

C/Y_D

Question 3

Marginal propensity to consume

Answer 3

ΔC/(ΔY_D )

Question 4

Average propensity to save

Answer 4

S/Y_D

Question 5

Marginal propensity to save

Answer 5

∆S/(∆Y_D )

Question 6

Simple macro modal aggregate expenditure

Answer 6

C+I

Question 7

Simple multiplier

Answer 7

1/(1−z)

Question 8

Change in the simple multiplier

Answer 8

∆A/(1−z)

Question 9

Equilibrium

Answer 9

AE−Actual Y