In the equation C = a + bY, which describes the aggregate consumption function, 'b' stands for?
The marginal propensity to consume
The amount of income when consumption is zero
The amount of consumption when income is zero
The average consumption level
The Marginal Propensity to Consume
ΔS/ΔY
C/y . ΔP/ΔQ
ΔP/ΔQ
ΔC/ΔY
The aggregate demand curve shift to the left when
The price level increases
Taxes are increased
All of the above
The aggregate demand curve
The total quantity of an economy's intermediate goods demanded at all price levels
The total quantity of an economy's intermediate goods demand at a particular Price level
The total quantity of an economy's final goods and services demanded at a particular level.
The total quantity of an economy's final goods and services demanded at different price levels
The central problem in Macro Economics is
Income and employment
Price and Output
Interest and Money
Unemployment
Disguised unemployment
Full employment
Under-employment
Aggregate supply is the total amount
Produced by the government
Of goods and services produced in an economy
Of labour supplied by all households
Of products produced by a given industry
Keynes assumed the situation of
Under employment
Involuntary unemployment
Marginal unemployment
The Keynesian analysis of aggregate demand indicates that changes in the money supply
Have no effect on aggregate demand
Shift the aggregate demand curve in the opposite direction of the change in government spending
Shift the aggregate demand curve in the same direction as the change in government spending
Move the economy along the aggregate demand curve rather than shifting it
As the MPS increases, the multiplier will:
Decrease
Increase
Either increase or decrease depending on the size of the change in investment
Remain constant