Income And Expenditure Economics Worksheets

ADVERTISEMENT

Unit 3 Exam Review
Income and Expenditure
Formulas to Know:
1.
Figure MPC and MPS.
MPC =
2.
Explain relationship between MPC and the multiplier.
3.
List and understand reasons for shifts in consumption graph.
MPS =
4.
Figure the multiplier and the resulting impact of autonomous changes in spending.
Consumer/government spending
5.
Figure and graph the consumption function. How is MPC represented on the graph?
multiplier =
Aggregate Supply & Aggregate Demand
Consumption function =
6.
Define aggregate supply and aggregate demand.
7.
List and understand reasons for shifts of the AS and AD curves.
Tax Multiplier =
8.
Identify results of AD and AS shifts on:
a.
Employment/unemployment
b.
Price level
c.
Real GDP
9.
Explain why the AD curve is downward sloping.
10. Explain why the SRAS and LRAS curves are sloped as they are.
11. Define sticky wages and relationship with aggregate supply.
The AD-AS Model
12. Determine the impact of market conditions on SRAS, LRAS and the PPC.
13. Define and understand potential output’s (Y
) relationship with the AD-AS Model.
P
14. Identify and graph inflationary and recessionary gaps.
15. Define stagflation and identify its effects on the economy.
Long-Run Macroeconomic Equilibrium & Government Policy
16. Explain the differences between automatic and discretionary stabilization.
17. Give examples of automatic stabilizers.
18. Compare multiplier effects of fiscal policy options.
19. Evaluate fiscal policy options to combat recessions and inflation. (Which government actions are likely to be most effective?)
20. List examples of government transfers.
21. Explain the difference in multiplier effects between the spending and tax multiplier.
22. Explain why MPC + MPS + taxes = 1.
Practice Questions
23. Complete this chart.
Income
Expenditures
MPC
MPS
$0
$8,000
N/A
N/A
$20,000
$11,000
$40,000
$25,000
$60,000
$35,000
$80,000
$41,000
What is the autonomous consumer spending?
24. Determine the multiplier and the net effect of the following autonomous changes in spending:
a.
An influx of $100 billion in government spending when the marginal propensity to consume is 0.75.
b.
An influx of $250 billion in business investment when the marginal propensity to consume is 0.5.
c.
An influx of $180 billion in export sales revenue when the marginal propensity to consume is 0.8.

ADVERTISEMENT

00 votes

Related Articles

Top 20 Happy Easter Cards And Gift Tags To Download For Free
Top Ten Easter Arts And Crafts Activities For Your Kids
Free Easter Coloring Pages And Easter Printables For Your Kids

Related forms

Income And Expenditure Spreadsheet Income And Expenditure Spreadsheet Financial
Income And Expenditure Statement Sheet - Fusa Income And Expenditure Statement Sheet - Fusa Financial
Self-employed Income And Expenditure Sheet Self-employed Income And Expenditure Sheet Financial
Economic Worksheet: Creating An Amortization Schedule Economic Worksheet: Creating An Amortization Schedule Education
Economics Worksheet With Answers Economics Worksheet With Answers Education
Economics Worksheet With Answers - 2011 Economics Worksheet With Answers - 2011 Education
Income And Asset Worksheet Income And Asset Worksheet Financial
Income And Expense Statement (aka Profit And Loss Statement) Income And Expense Statement (aka Profit And Loss Statement) Legal
Income And Payments And Credits/declaration Of Estimated Tax Instructions Income And Payments And Credits/declaration Of Estimated Tax Instructions Financial
Income And Expense Schedule For Cooperative And Condominium Property Form Tc203 Instructions For 2004 Income And Expense Schedule For Cooperative And Condominium Property Form Tc203 Instructions For 2004 Financial

Related Categories

Parent category: Education
Download
Go
Page of 3