1. disposable income consumer spending $10,000 $7,500 $12,000 $8,500 what is the expenditure multiplier according to the information in the table above? 4 3 2 1 .2 2.if consumers expect a shortage of consumer goods in the future, what will happen to output and price level? output / price level increase / increase increase / decrease increase / no change decrease / decrease 3.which of the following would not cause a shift in long-run aggregate supply? an increase in aggregate expenditures. a decrease in capital investment. a technological advance in the consumer goods market. an increase in education for employees. an influx of skilled immigrants.

1.) The expenditure multiplier is 2.
   The formula for expenditure multiplier is 1 / (1 - MPC). MPC is the marginal propensity to consume which can be computed by the change in spending over the change in income.
   MPC = 8500 - 7500 / 12000 - 10000
   MPC = 1000 / 2000
   MPC = 0.5
   expenditure multiplier = 1 / (1 - 0.5)
   expenditure multiplier = 2

2.) I think you forgot one option. The answer should be decrease/increase.
   Because people will begin to purchase now, if a shortage is expected, which will increase price level because quantity demanded will increase. The output will decrease because supply decreases.

3.) A - An increase in aggregate expenditures.
   Because aggregate expenditure is an aggregate demand, not supply.

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