The level of overall economic activity p. I

Injections into the circular flow of income:

• Decrease national income

• Always equal national income

• Always equal savings

• Include investment and export revenue

If injections are greater than withdrawals:

• National income is likely to increase

• National income will stay in equilibrium

• National income is likely to decrease

• Prices will fall

In the circular flow of income model injections:

• Are assumed to be exogeneous (independent of national income)

• Decrease GDP

• Are assumed to be a function of national income

• Decrease the investment into an economy

Real national income measures:

• Nominal national income adjusted for population change

• Nominal national income adjusted for inflation

• Nominal national income adjusted for unemployment

• Nominal national income adjusted for exchange rates

Which of the following statements is true about the circular flow?

• Output is greater than income

• Output is less than expenditure

• Income is more than expenditure

• Output equals income equals expenditure

GDP measures:

• A country's income

• Consumer spending

• A country's wealth

• Net trade income