Level of overall economic activity

Macroeconomic objective of economic growth refers to:

• a rapid rate of increase of national income

• a steady rate of increase of national income

• a low rate of increase of national wealth

• an increasing number of wealthy individuals

Macroeconomic objective of _____ assumes the low and stable rate of inflation

What does 2nd arrow represent?

• goods and services

• expenditure on goods and services

• wages, rent, interest and profits

• factors of production

What is measured (as GDP) with expenditure method?

• value of all the incomes earned in the economy

• actual value of the goods and services produced in the economy

• actual value of all money supplied by central bank

• value of all spending on goods and services in the economy

expenditure method GDP calculation formula:

• C + I + G + (X - M)

• C + I + G - (X + M)

• C + I + G + X

• K + M + B 2024

What is GNI?

• total of all economic activity in a country, regardless of who owns the productive assets

• total of all economic activity of a company

• total income earned by country's factors of production regardless of where the assets are located

• total expenditure on productive assets owned by a country

Why is real GDP more reliable indicator of economic growth than the nominal GDP?

• it is the economic activity in a country without the foreign trade

• it includes the value of international banking transfers

• it doesn't concern inflation

• it is the growth of economic activity adjusted for inflation

Why are national statistics gathered? (include all options)

• government uses them to develop policies

• basis for comparing countries' economies and social well-being

• economists develop models and forecast the future changes in the economy

• businesses forecast future demand

• checking the achievement of macroeconomic objectives by government

Inaccuracies, unrecorded economic activity, external costs, concerns of quality of life are the examples of ________ of national income statistics

The income distribution in the economy should be _____, to achieve the macroeconomic objective of income distribution.

• equal

• equitable