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Macroeconomics (Chap 13-16) Flashcards | StudBud
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Macroeconomics (Chap 13-16)
Macroeconomics (Chap 13-16)
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Flashcards
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Questions
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Answers
1
Define GDP
Total value of imports of a country per year
Total value of exports of a country per year
Total value of all economic activity in a country
Total value of government revenue collected
2
What method of measuring GDP does the arrow marked as number 4 in this figure measure?
Income approach
Expenditure approach
3
What does NOT cause a shift of the AD curve?
Change in consumer preference/confidence
Change in the price of a compliment good
Change in the average price level
Change in the disposable income
4
Which is the correct algebraic expression for GDP?
GDP = P + I + G + (X - M)
GDP = C + I + G + (X + M)
GDP = C + Y + G + (M - X)
GDP = C + I + G + (X - M)
5
What is NOT a payment to the factors of production?
Entrepreneurship
Profits
Wages
Rent
6
Which of the following is an interventionist supply-side policy?
Tax incentives linked to Research & Development spending
Privatisation
Reducing the minimum wage
Reducing income tax
7
Define Aggregate Demand (POT = Period of time, PL = Price Level)
total spending on goods & services at anytime at a given PL
total spending on goods & services in a POT
total spending on goods & services in a PoT at a given PL
8
What caused the shift of LRAS?
Change in government intervention
Change in cost of its factors of production
Change in business confidence
Change in quantity and quality of its factors of production
9
Define households
people who buy the nation's output of goods and services
a house and its occupants regarded as a unit.
people in a family living together in one house
owners of all of the economy's factors of productions
10
What does the missing box represent?
Wages, rents, interest and profits
Land, labour and capital
Inflation
Economic growth
11
Which of the following DECREASES the size of the circular flow model?
Leakages
Shrinkages
Injections
12
What is NOT a cause of changes in the components of AD in Macroeconomics?
Changes in goals of the government
Changes in technology
Changes in price of substitute and/or complement
Changes in the level of national income
13
Filling in the blank: "Macroeconomics is concerned with the ___ of a nation’s ____”
Management/factors of production
Production/Resources
Management/factors of production
Allocation/Resources
14
T or F?
“LRAS in Neo-Classical is perfectly inelastic and independent of the price level.”
False
True
15
If AD intersects SRAS at an output level below full employment the resulting gap is called...
Inflationary gap
Unemployment gap
Output gap
Deflationary gap
