WorksheetsC3 : SET 2 - DETERMINATION OF NATIONAL INCOME EQUILIBRIUM
Total questions: 10
Worksheet time: 5mins
If Ali received a RM2500 bonus and her MPS is 0.20, her consumption rises by RM______and her saving rises by RM _______.
500 ; 100
2500 ; 200
2000 ; 500
2500 ; 20
In two sector, saving function is S = -250 + 0.2Y. Investment function is I = 20. Determine the national income equilibrium.
2000
1350
2500
2750
Which of the following statement is the factor of leakage in circular flow of income?
Export
Savings
Households consumption
Government expenditures
In an economy with a foreign trade sector but no government sector, national income will be in
equilibrium if _____________________.
S=I
X=M
S+I=X+M
S+M=X+I
Average propensity to saving is___________.
saving ratio to use
the ratio of savings to income
ratio changes and changes in tax savings equal to saving
total change in savings due to a number of specific changes in income
National income must be at its equilibrium level when ______________.
import equal export
injections equal leakage
saving equal investment
indirect taxes equal subsidies
What is the meaning of ”equilibrium “in macroeconomics?
Aggregate demand is more than aggregate supply
Aggregate demand is less than aggregate supply
Aggregate demand is equal to aggregate supply
Total value of output produced is more than total value of expenditure
If consumption function is C = 250 + 0.75Y and investment is I = RM450, find the equilibrium income in this two sector economy.
RM2800
RM3600
RM7200
RM9000
In the circular flow of income, government spending and export are____________.
injection and leakage respectively.
leakage and injection respectively.
components of aggregate supply.
injection.
Two markets shown in the simple circular flow model are ______________.
household and firms
products and resources
capital goods and consumer goods
all of the above
