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