Econ 110 Final Exam Questions With Correct
Answers
disposable |income |- |CORRECT |ANSWER✔✔-income |that |is |available |to |you |for |saving |or |
spending |after |taxes |have |been |paid |and |transfers |received
consumption |function |- |CORRECT |ANSWER✔✔-the |positive |relationship |between |consumption
|spending |and |real |disposable |income
consumption |- |CORRECT |ANSWER✔✔-the |part |of |GDP |purchased |by |households |as |final |users
marginal |propensity |to |consume |(MPC) |- |CORRECT |ANSWER✔✔-the |amount |by |which |
consumption |spending |rises |when |disposable |income |rises |by |one |dollar; |the |slope |of |the |
consumption |function
autonomous |consumption |spending |- |CORRECT |ANSWER✔✔-the |part |of |consumption |
spending |that |is |independent |of |income; |the |vertical |intercept |of |the |consumption |function
consumption-income |line |- |CORRECT |ANSWER✔✔-a |line |showing |aggregate |consumption |
spending |at |each |level |of |income |or |GDP
short-run |macro |model |- |CORRECT |ANSWER✔✔-a |macroeconomic |model |that |explains |how |
changes |in |spending |can |affect |real |GDP |in |the |short |run
short-run |macroeconomic |equilibrium |- |CORRECT |ANSWER✔✔-a |combination |of |price |level |
and |GDP |consistent |with |both |the |AD |and |AS |curves
, aggregate |expenditure |(AE) |- |CORRECT |ANSWER✔✔-the |sum |of |spending |by |households, |
business |firms, |the |government, |and |foreigners |of |final |goods |and |services |produced |in |the |
United |States
gross |domestic |product |(GDP) |- |CORRECT |ANSWER✔✔-the |total |value |of |all |final |goods |and |
services |produced |for |the |marketplace |during |a |given |year, |within |the |nation's |borders
expenditure |multiplier |- |CORRECT |ANSWER✔✔-the |amount |by |which |equilibrium |real |GDP |
changes |as |a |result |of |a |one-dollar |change |in |autonomous |consumption, |investment |spending,
|government |purchases |or |net |exports
unit |of |account |- |CORRECT |ANSWER✔✔-provides |buyers |and |sellers |with |a |common |reference
|point |for |valuing |goods |and |services
means |of |payment |- |CORRECT |ANSWER✔✔-anything |acceptable |as |payment |for |goods |and |
services
fiat |money |- |CORRECT |ANSWER✔✔-something |that |serves |as |a |means |of |payment |by |
government |declaration
store |of |value |- |CORRECT |ANSWER✔✔-provides |a |form |of |transferring |purchasing |power |from |
the |present |to |the |future
legal |tender |- |CORRECT |ANSWER✔✔-money |that |by |law |must |be |accepted |for |payment |of |
public |and |private |debts
commodity |money |- |CORRECT |ANSWER✔✔-a |good |used |as |money |that |also |has |value |
independent |of |its |use |as |money
Answers
disposable |income |- |CORRECT |ANSWER✔✔-income |that |is |available |to |you |for |saving |or |
spending |after |taxes |have |been |paid |and |transfers |received
consumption |function |- |CORRECT |ANSWER✔✔-the |positive |relationship |between |consumption
|spending |and |real |disposable |income
consumption |- |CORRECT |ANSWER✔✔-the |part |of |GDP |purchased |by |households |as |final |users
marginal |propensity |to |consume |(MPC) |- |CORRECT |ANSWER✔✔-the |amount |by |which |
consumption |spending |rises |when |disposable |income |rises |by |one |dollar; |the |slope |of |the |
consumption |function
autonomous |consumption |spending |- |CORRECT |ANSWER✔✔-the |part |of |consumption |
spending |that |is |independent |of |income; |the |vertical |intercept |of |the |consumption |function
consumption-income |line |- |CORRECT |ANSWER✔✔-a |line |showing |aggregate |consumption |
spending |at |each |level |of |income |or |GDP
short-run |macro |model |- |CORRECT |ANSWER✔✔-a |macroeconomic |model |that |explains |how |
changes |in |spending |can |affect |real |GDP |in |the |short |run
short-run |macroeconomic |equilibrium |- |CORRECT |ANSWER✔✔-a |combination |of |price |level |
and |GDP |consistent |with |both |the |AD |and |AS |curves
, aggregate |expenditure |(AE) |- |CORRECT |ANSWER✔✔-the |sum |of |spending |by |households, |
business |firms, |the |government, |and |foreigners |of |final |goods |and |services |produced |in |the |
United |States
gross |domestic |product |(GDP) |- |CORRECT |ANSWER✔✔-the |total |value |of |all |final |goods |and |
services |produced |for |the |marketplace |during |a |given |year, |within |the |nation's |borders
expenditure |multiplier |- |CORRECT |ANSWER✔✔-the |amount |by |which |equilibrium |real |GDP |
changes |as |a |result |of |a |one-dollar |change |in |autonomous |consumption, |investment |spending,
|government |purchases |or |net |exports
unit |of |account |- |CORRECT |ANSWER✔✔-provides |buyers |and |sellers |with |a |common |reference
|point |for |valuing |goods |and |services
means |of |payment |- |CORRECT |ANSWER✔✔-anything |acceptable |as |payment |for |goods |and |
services
fiat |money |- |CORRECT |ANSWER✔✔-something |that |serves |as |a |means |of |payment |by |
government |declaration
store |of |value |- |CORRECT |ANSWER✔✔-provides |a |form |of |transferring |purchasing |power |from |
the |present |to |the |future
legal |tender |- |CORRECT |ANSWER✔✔-money |that |by |law |must |be |accepted |for |payment |of |
public |and |private |debts
commodity |money |- |CORRECT |ANSWER✔✔-a |good |used |as |money |that |also |has |value |
independent |of |its |use |as |money
