Questions what is gdp ? Ngdp,rgdp,gdp deflator? National income? Gnp vs gdp ? Nominal gdp and Real gdp ? Tests

2.Theme; Bussiness cycle

QUESTIONS

1.What causes recessions?

2. what are the major determinants of consumption expenditures?

3.How does consumption behave over the business cycle?

4.how does investment behave over the business cycle?

5.How do temporary increases in government purchases affect GDP?

TEST

1. Deflation occurs when:
a. the unemployment rate decreases.
b. prices fall.
c. prices increase, but at a slower rate.
d. real GDP decreases.

3.Theme;Unemployment

QUESTION

1.How is it types of unemployment?

2.What is unemployment?

3.What is LFPR ?

4.The major types of unemployment?

5.Business fluctuations?

TEST

1. If the currency-deposit ratio equals 0.5 and the reserve-deposit ratio equals 0.1, then the money
multiplier equals:
a. 2.0.
b. 2.5.
c. 0.6.
d. 1.67.
2. Bank reserves equal:
a. gold kept in bank vaults.
b. gold kept at the central bank.
c. currency plus demand deposits.
d. deposits that banks have received but have not lent out.
3. If domestic saving is less than domestic investment, then net exports are _______ and net capitaloutflows are _______.
a. positive; positive.
b. positive; negative.
c. negative; positive.
d. negative; negative.

4. Unemployment caused by the time it takes workers to search for a job is called ________

unemployment.
a. frictional
b. structural
c. insider
d. efficiency
5. The value of net exports is also the value of:
a. net investment.
b. net saving.
c. national saving.
d. the excess of national saving over domestic investment.

4.Theme;Aggregate demand and aggregate supply

QUESTION

1.Give the meaning of Marginal Propensity to Save?

2.Define Marginal Propensity to Consume?

3.Give the meaning of Aggregate Supply?

4.Define Investment?

5.What is excess of exports of goods over the imports of goods called?

TEST

1.key determinant of exports is?

a)The industrial base of the economy

b)The number of people in work

c)The political beliefs of the government

d)The role of the central bank

2.Which of the following would NOT cause a shift in AD?

a)A reduction in income tax

b)A reduction in interest rates

c)An increase in government spending

d)A fall in the cost of production

3.Which of the following would NOT cause a SHIFT in AS?

a)The level of government spending

b)The costs of the factors of production

c)Incentives

d)The structure of the economy

4.The price of imports rose, caused by a change in the value of the pound then the AS would shift to the?

a)right

b)left

c)vertically

d)not at all

5.Which of the following is a major influence on AS?

a)Consumption

b)Government spending

c)The quality of the factors available

d)The advice of government

5. Theme; INFILATION

QUESTION

1. What is inflation?

2.What is deflation?

3.Why are infilation and deflation considered to be economic problems?

4.Assess the effectiveness of monetary policy in controlling infilation?

5.What is stagfilation?

TEST

1. To calculate the future cost of a product or service, people need to know everything except the?

a. Inflation rate (e.g., 3%) b. Current cost of product or service

c. Type of product or service d. Future purchase date

2. An increase in the general level of prices for goods and services in the economy that causes changes in consumer buying power is referred to as ___ risk.

a. Interest-rate b. Inflation

c. Market d. Economic

3. Who is hurt most by inflation?

a. Homeowners with adjustable-rate mortgages

b. Homeowners with fixed-rate mortgages

c. People who own real estate

d. People who buy precious metals such as gold

4. To determine how long it takes for prices to double, divide an assumed inflation rate into 72. This is called the Rule of 72. If a 4% inflation rate is expected, how long will it take for prices to double?

a. 12 years b. 16 years

c. 18 years d. 24 years

5. Deflation is generally not considered desirable because

a. It has historically been associated with severe economic downturns

b. People rush to buy things and increase their spending levels

c. The general level of prices in the economy increases

d. The general level of prices in the economy decreases