Macroeconomics

________ classifies and adds up spending on all goods and services produced in an economy and subtracts spending on imports.

______ adds up income earned by everyone in a country

____ accounts for the value that is added to the economy at each production stage

All of the following are components of productivity, except

• Physical capital

• Human capital

• Technological improvements

• Natural resources

• Finance capital

Convergence theory states that countries that start out poor will grow faster than rich ones and eventually converge to the same growth rate as the rich ones.

• True

• False

The aggregate demand curve is

• (a) the total quantity of an economy’s intermediate goods demanded at all price levels.

• (b) the total quantity of an economy’s intermediate goods demanded at a particular price level.

• (c) the total quantity of an economy’s final goods and services demanded at a particular price level.

• (d) the total quantity of an economy’s final goods and services demanded at different price levels.

• (e) none of the above.

The aggregate demand curve shifts to the right when

• (a) taxes are cut.

• (b) government spending is reduced.

• (c) animal spirits decrease.

• (d) the money supply is reduced.

• (e) all of the above.

The aggregate demand curve shifts to the right when

• (a) the money supply increases.

• (b) net exports increase.

• (c) taxes are increased.

• (d) all of the above.

• (e) both (a) and (b) of the above.

____ is the set of skills, knowledge, experience, and talent that determines the productivity of workers

Select all the components of productivity

• physical capital

• human capital

• finance capital

• technological improvements

• international affairs