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- 1. Multiple Choice
The microeconomic concept of 'quantity' can be said to have the macroeconomic equivalent of...
GDP
Aggregate demand
Economic growth
Recession
- 2. Multiple Choice
The following are considered leakages from the circular flow of income, EXCEPT...
savings
taxes
borrowing
imports
- 3. Multiple Choice
The most commonly used measure of a country's national income is ...
GNP
GDP
real GDP
CPI
- 4. Multiple Choice
The gross national product (GNP) equals ...
NNP - depreciation
GDP - inflation
GDP + net national income from abroad
GDP - net national income from aborad
- 5. Multiple Choice
In discussing the business cycle, an 'expansion' is often referred to as ...
peak
recovery
pre-peak
contraction
- 6. Multiple Choice
A positive output gap exists when ...
The long run potential GDP shifts outward
The production possibilities curve moves inward
actual GDP is greater than potential GDP
actual GDP is less than potential GDP
- 7. Multiple Choice
There are several arguments as to why the Aggregate Demand curve is downward sloping, including all of these EXCEPT...
The wealth effect
The inflation rate effect
The interest rate effect
The international trade effect
- 8. Multiple Choice
Aggregate demand is simplified with which of these equations?
C + I + G - (X - M)
C + I + G - (X + M)
C + I + G + (X + M)
C + I + G + (X - M)
- 9. Multiple Choice
All the following changes to the AD components are likely to effect investment EXCEPT:
Changes in interest rates
Changes in the level of income taxes
Technological change
Changes in foreign income levels
- 10. Multiple Choice
The short run aggregate supply would shift with a change to all of the following EXCEPT ...
wage rates
the cost of raw materials
changes in business taxes
supply shocks (e.g., bad weather)
no exception - all of the above would shift the short run aggregate supply
- 11. Multiple Choice
It is possible for an economy to produce beyond it's long run aggregate supply because ...
it can find more resources
it can "dip into" its natural unemployment rate to hire people who may be temporarily unemployed
it can figure out how to produce more efficiently
it can use a different measure to account for production
- 12. Multiple Choice
Referring to the Keynesian curve, in the 'Keynesian Range' ...
real GDP is low, price level is constant, and unemployment is high
real GDP is high but falling, price level is falling, and unemployment is rising
real GDP is rising, price level is rising, and unemployment is falling
real GDP is at its peak, price level consistently rises, and unemployment is low
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