Families always consist of a mom, dad, and children. 

Assume the economy in this graph is initially made up of consumption (C) and $50 of investment (Ig) spending.  Then if government spending (G) of $50, exports (X) of $50, and imports (M) of $50 were included in the economy, what would the new equilibrium GDP be?   

                        Disposable Income               Consumption                                   $0                                            $8                                     80                                            80                                     160                                          152                                     240                                          224                                       Based on this consumption schedule, MPC is __________.

“Too much money chasing too few goods” best describes

The primary determinant of the level of consumption and saving in the economy is the

Based on the new equilibrium GDP you identified on the graph above, what is the corresponding level of consumption only?

Now assume the economy is expanded to include investment spending of $100.  Therefore, GDP = 0.9DI + 50 + 100 Using the multiplier you calculated above, what will the impact be to equilibrium GDP as a result of adding investment to the aggregate expenditures model?

U3 is the headline measure of unemployment in the US. What is a criticism of this measure?

During a period of high unemployment,

Assume an economy has 7 million workers who are unemployed (and all looking for work), 161.5 million workers who are employed, and the civilian non-institutionalized adult population equals 269.3 million. The unemployment rate is