AP Macro Spending and Tax Multipliers

AP Macro Spending and Tax Multipliers

10th - 12th Grade

12 Qs

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AP Macro Spending and Tax Multipliers

AP Macro Spending and Tax Multipliers

Assessment

Quiz

Social Studies

10th - 12th Grade

Medium

Created by

John Mccracken

Used 31+ times

FREE Resource

12 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

MPC = .8

Consumption Spending Increases by $10B

What is the net effect on AD?

Increase of $50B

Decresae of $50B

Increase of $40B

Decrease of $80B

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

MPS = .25

Consumption Spending Increases by $5M

Investment Spending Increases by $2M

What is the net effect on AD?

Increase of $25M

Decrease of $25M

Increase of $28M

Decrease of $28M

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

MPS = .4

What is the Tax Multiplier?

-1.5

2.5

2

-1.25

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

MPC = .8

Net Exports increases by $20B

Government cuts taxes by $5B

What is the net effect on AD?

Increase of $80B

Increase of $120B

Increase of $125B

Increase of $100B

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

MPC = .9

What is the spending multiplier?

10

-10

9

1

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

MPS = .1

Government Cuts Spending by $40B

Government Cuts Taxes by $100B

What is the net effect on AD

Increase of $500B

Increase of $860B

Decrease of $1300B

Decrease of $140B

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

MPC = .75

Consumption Spending Increases by $10B

Investment Spending Increases by $20B

Net Exports Decrease by $5B

What is the net effect on AD?

Increase by $200B

Zero net effect

Increase by $100B

Decrease by $100B

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