Intro to Macroeconomics

The microeconomic concept of 'quantity' can be said to have the macroeconomic equivalent of...

• GDP

• Aggregate demand

• Economic growth

• Recession

The following are considered leakages from the circular flow of income, EXCEPT...

• savings

• taxes

• borrowing

• imports

The most commonly used measure of a country's national income is ...

• GNP

• GDP

• real GDP

• CPI

The gross national product (GNP) equals ...

• NNP - depreciation

• GDP - inflation

• GDP + net national income from abroad

• GDP - net national income from aborad

In discussing the business cycle, an 'expansion' is often referred to as ...

• peak

• recovery

• pre-peak

• contraction

A positive output gap exists when ...

• The long run potential GDP shifts outward

• The production possibilities curve moves inward

• actual GDP is greater than potential GDP

• actual GDP is less than potential GDP

There are several arguments as to why the Aggregate Demand curve is downward sloping, including all of these EXCEPT...

• The wealth effect

• The inflation rate effect

• The interest rate effect

• The international trade effect

Aggregate demand is simplified with which of these equations?

• C + I + G - (X - M)

• C + I + G - (X + M)

• C + I + G + (X + M)

• C + I + G + (X - M)

All the following changes to the AD components are likely to effect investment EXCEPT:

• Changes in interest rates

• Changes in the level of income taxes

• Technological change

• Changes in foreign income levels

The short run aggregate supply would shift with a change to all of the following EXCEPT ...

• wage rates

• the cost of raw materials

• changes in business taxes

• supply shocks (e.g., bad weather)

• no exception - all of the above would shift the short run aggregate supply