.

ECON1002.1 INTRODUCTION TO MACROECONOMICS MIDTERM EXAM SPRING 22 QUESTIONS (billions of dollars) Aggregate saving -500 1,000 Aggregate output, Y (billions of dollars) 1. Refer to the figure above. At income level $1,500, this household's saving is than (to) zero and this household's consumption is zero. A) less than; greater than B) equal to; equal to C) greater than; less than D) greater than; greater than 2) Refer to the figure above. This household's consumption function is A) C=200 + 0.2Y. B) C= 300 + 0.75Y. C) C= 500 + 0.5Y. D) C = 1,000 + 0.2Y. 3) This household saves -$300 at an income level of A) $400. B) $300. C) $250. D) $125. 4) If consumption is $30,000 when income is $35,000, and consumption increases to $36,000 when income increases to $43,000, the MPC is A) 0.65. B) 0.75. C) 0.80. D) 0.95