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Macroeconomic Equilibrium Flashcards | StudBud
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Macroeconomic Equilibrium
Macroeconomic Equilibrium
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Basics of AD, AS and Macroeconomic equilibrum. IB Econ Syllabus #economics #macroeconomics #ib
Flashcards
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Questions
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Answers
1
What is the equation for calculating GDP?
GDP = C + I + P + (X - M)
GDP = C + Y + G + (X - M)
GDP = C + I + G + (X - N)
GDP = C + I + G + (X - M)
2
A contraction of the economy would occur in which part of the business cycle?
Recession
Recovery
Peak
3
More spending on durable goods would cause an increase in...
(X - M)
G
C
I
4
Which of the following is an injection into the circular flow?
Savings
Imports
Investment
Taxes
5
Which of the following pairs of factors of production and rewards is not correct?
Entrepreneurship & Salaries
Land & Rent
Capital & Interest
Labour & Wages
6
If AD intersects SRAS at an output level below full employment the resulting gap is called...
The output gap
The deflationary gap
The inflationary gap
The unemployment gap
7
What goes on the horizontal axis of an AD/AS diagram?
LRAS
Capital goods
Real output
Average price level
8
The assets that people own is counted as part of their....
Wealth
Income
9
A vertical LRAS curve is a ....
Keynesian LRAS
New Classical LRAS
10
Which of the following in NOT a macroeconomic objective?
Steady increase in national output (growth)
Low and stable rate of inflation
Low level of employment
Equitable distributioon of income
11
If the productive potential of an economy was to increase, how would this be shown on a PPC?
The PPC would shift outwards
The PPC would shift inwards
The economy would move to a point closer to the PPC
12
Which of the following is a method for calculating GDP?
The rewards approach
The savings approach
The Gawler approach
The expenditure method
13
If interest rates were to increase, what would the affect on AD be?
It would increase
It would remain the same
It would decrease
