AS Economics Revision

Which one of these is a leakage from the circular flow of income?

• Government Spending

• Interest Rates

• Imports

• Exports

An increase in Aggregate Demand when using a neoclassical LRAS curves leads to:

• An increase in demand

• An increase in the price level

• an increase in real GDP

• An increase in the exchange rate

Which of these are examples of market failure (select all that apply):

• Monopolies

• Interest Rates

• Externalities

• Public Goods

• Private Goods

The basic economic problem is that of

What shifts the aggregate demand curve outwards?

• An increase in taxes

• An increase in interest rates

• An increase in government spending

• An outwards shift in LRAS

Which of these will increase the size of the multiplier?

• An increase in taxes

• A decrease in taxes

• A decrease in consumption

• An increase in savings

A minimum price on a good

• Decreases Demand, Increases Supply

• Decreases Demand, Decreases Supply

• Increases Demand, Increases Supply

• Increases Demand, Decreases Supply

The socially efficient equilibrium occurs when

• MPC = MPB

• MSB = MPC

• MSC = MPB

• MSC = MSB