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Aggregate Demand Component and Business Cycle

Authored by Vivian Ma

Business

11th Grade

Used 2+ times

Aggregate Demand Component and Business Cycle
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12 questions

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1.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Media Image

Consider the following data for a hypothetical economy.

Using this data, which one of the following statements about the hypothetical economy is correct?

A. It is contracting, because savings are greater than taxation receipts.

B. It is contracting, because leakages are greater than injections.

C. It is expanding, because injections are greater than leakages.

D. It is expanding, because imports are greater than private investment.

2.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Which one of the following actions are economists most likely to consider as investment expenditure?

A. an individual buying shares

B. a supermarket installing self-serve checkouts

C. a company paying its workers higher wages

D. a household purchasing a home entertainment unit

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

As a component of Aggregate Demand, Private Investment expenditure (I) would:

not include the purchase of new machinery by firms.

include the purchase of a microwave by a family.

include the construction of new houses on the outskirts of Melbourne and in regional towns such as Ballarat.

include spending on government infrastructure projects around Australia.

4.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

The largest component of Aggregate Demand is:

A. Exports minus imports (Net Exports)

B. Government spending

C. Private Consumption spending

D. Private Investment spending

5.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

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

A. an increase in consumption spending

B. transfer payments made by the government

C. an increase in imports

D. an increase in investment spending

6.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Media Image

Which of the following combination of indicators would be most likely to be considered ‘lagging’ indicators?

A. i, ii, iii

B. i, iv, v

C. ii, v, vi

D. i, v, vii

7.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Which of the following is most likely to be considered Investment expenditure within the Australian economy?

A. An individual educating themself

B. The government paying wages to university lecturers

C. A trucking business purchasing more vehicles

D. China buying more iron ore from Australia

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