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IB Macro Equilibrium Flashcards | StudBud
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IB Macro Equilibrium
IB Macro 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
Which of the following is a method for calculating GDP?
The expenditure method
The rewards approach
The Gawler approach
The savings approach
2
Which of the following is an interventionist supply-side policy?
Tax incentives linked to R&D spending
Privatisation
Reducing income tax
Reducing the minimum wage
3
Which of the following is NOT a macroeconomic objective?
Low and stable rate of inflation
Equitable distributioon of income
Steady increase in national output (growth)
Low level of employment
4
The policy which deals with government spending and revenue is called...
Fiscal Policy
Monetary Policy
5
What is the equation for calculating GDP?
GDP = C + I + G + (X - M)
GDP = C + Y + G + (X - M)
GDP = C + I + P + (X - M)
GDP = C + I + G + (X - N)
6
If the productive potential of an economy was to increase, how would this be shown on a PPC?
The PPC would shift outwards
The economy would move to a point closer to the PPC
The PPC would shift inwards
7
If AD intersects SRAS at an output level below full employment the resulting gap is called...
The short run gap
The unemployment gap
The inflationary gap
The deflationary gap
8
If interest rates were to increase, what would the affect on AD be?
It would remain the same
It would decrease
It would increase
9
A vertical LRAS curve is a ....
Keynesian LRAS
New Classical LRAS
10
A contraction of the economy would occur in which part of the business cycle?
Recovery
Recession
Peak
11
Which of the following pairs of factors of production and rewards is not correct?
Land & Rent
Entrepreneurship & Salaries
Labour & Wages
Capital & Interest
12
Which of the following is an injection into the circular flow?
Investment
Taxes
Savings
Imports
13
More spending on durable goods would cause an increase in...
I
G
C
(X - M)
14
The assets that people own is counted as part of their....
Income
Wealth
15
What goes on the horizontal axis of an AD/AS diagram?
Real output
LRAS
Capital goods
Average price level
