An increase in aggregate demand may be caused by:

an expansion in foreign incomes.

A country operating on its production possibilities curve can raise economic growth by:

sacrificing current consumption for extra capital goods.

Canada's natural unemployment rate:

is a measure of full employment in the Canadian economy.

Which of the following is not true for the CPI?

It is employed to compare GDP levels in different years.

If there is positive unplanned investment:

real output must exceed real expenditures.

To avoid the problem of double counting in the calculation of GDP, national income accountants:

count only the value added at each stage of production.

studbud

Review ch. 8-10

11 termsStudBud Administration188 plays

Economics

Flashcards11 cardsFPractice quizPHost liveL

Questions 11

Answers

1
An increase in aggregate demand may be caused by:
an expansion in foreign incomes.
an increase in taxes.
a rise in the real interest rate.
2
A country operating on its production possibilities curve can raise economic growth by:
producing fewer capital goods and fewer consumption goods.
sacrificing current consumption for extra capital goods.
sacrificing capital goods for extra current consumption.
3
Which of the following will cause a short-run decrease in aggregate supply?
a decrease in the economy's labour force
a decrease in the economy's capital stock
an increase in the wage rate
4
Canada's natural unemployment rate:
is a measure of full employment in the Canadian economy.
includes both structural and cyclical unemployment.
includes both frictional and cyclical unemployment.
5
When a country's capital stock is growing:
net investment is positive.
gross investment is positive.
gross investment is negative.
6
To compare living standards in the same country in different years, the indicator used is:
GDP
GDP expressed in US dollars
per capita real GDP
real GDP
7
Which of the following is not true for the CPI?
It is employed to compare GDP levels in different years.
It reflects the consumption pattern of a typical household.
It uses a shopping basket of consumer products.
It is measured in terms of a base year
8
Which of the following is included in the expenditure approach to GDP?
gross investment
personal consumption
government purchases
all of the above
9
Household income after payment of income taxes is known as:
gross national product (or GNP).
per capita GDP.
gross domestic product (or GDP).
disposable income (DI).
10
If there is positive unplanned investment:
the price level is below its equilibrium level.
real output must exceed real expenditures.
theprice level will rise.
11
To avoid the problem of double counting in the calculation of GDP, national income accountants:
include only intermediate products.
count only the value added at each stage of production.
deduct value of final products from intermediate products

Review ch. 8-10 Flashcards | StudBud