2023 C2 H1 Econ Quiz on ADAS

In a 4-sector circular flow of income, we understand that national income = National Expenditure = National Output

• True

• False

Singapore has a small multiplier size because Government has raised GST.

• True

• False

Aggregate demand refers to the total demand for all final goods and services newly produced.

• True

• False

A change in import expenditure will always cause AD to shift.

• True

• False

An optimistic outlook could cause both C and I to increase.

• True

• False

The Keynesian Range of the AS is where there is

• excess capacity

• demand-deficient unemployment

• prices remain stable

• all of the above

A rise in cost of raw materials will shift

• horizontal & upward range of AS down

• horizontal & upward range of AS up

• vertical AS to the left

• entire AS to the left & upaward

A change in _________ of factors of production will shift the entire AS while a change in ________ of factors of production will shift the vertical AS only.

• quantity, quality

• quality, quantity

When AD cuts at the horizontal range of AS, it shows _________ and when it cuts high up at the vertical range of AS, it shows _____________

• recession, inflation

• unemployment, full-employment

When a government increases its spending, both AD and AS could rise given time.

• True

• False