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WorksheetsNEI 3.0
Total questions: 21
Worksheet time: 20mins
What is the meaning of ”equilibrium “in macroeconomics?
Aggregate demand is more than aggregate supply
Aggregate demand is equal to aggregate supply
Aggregate demand is less than aggregate supply
Total value of output produced is more than total value of expenditure
In the circular flow of income, government spending and export are____________.
injection and leakage respectively.
components of aggregate supply.
leakage and injection respectively.
injection.
In two sector, saving function is S = -250 + 0.2Y. Investment function is I = 20. Determine the national income equilibrium.
2000
2500
1350
2750
The marginal propensity to save is the proportion of ___________________.
disposable income which is invested to earn interest.
national income that not spent on consumer goods which is invested.
national income which is not spent on consumer good.
changes in national income which is not spend on consumer goods.
C = 150 + 0.8Yd. G =80, I=70, T=100. Calculate the national income equilibrium__________________.
600
1600
1800
1100
Calculate the amount of consumption when national income is 600, Saving = 150
455
405
450
460
When foreign sectors are included in calculating national income by using expenditure approach, the equation for aggregate income is _________.
Y=C+S+T+(X-M)
Y=C+I+G+(X–M)
Y=C+S–T–(X+M)
Y=C+I+T+(X+M)
If saving exceeds investment, then the level of income must ___________.
Increase
decrease
remain constant
rise above
In equation C= a+by, the value of b lies between______
0<b<1
0>b<1
0=b<1
0<b>1
In a closed economy, -------------- is not included
household
firm
government
foreign sector
Investment multiplier is the ratio of________
change in income to change in investment
change in investment to change in income
change in income to change in interest
None of the above
According to Keynesian multiplier model the value of MPC is 0.75 what would be the value of multiplier________
4
1.33
2
None of the above
An increase in planned investment spending causes aggregate output to_________
increase by an amount equal to the change in investment spending.
increase by an amount less than the change in investment spending.
increase by an amount greater than the change in investment spending
decrease by an amount less than the change in investment
Suppose that the MPC = 0.75 and there are no taxes and imports. Then a $100 increase in spending causes equilibrium national income to _______
decrease by $400
increase by $400
decrease by $750
increase by $750
If an increase in investment of RM100 million generates an increase of RM500 million in real GDP, the multiplier is _______
1.5
50
20
5
Given C= 150 mil + 0.75 Y, I= RM 200 mill, G=50 mill. If investment increase by RM 50 mill. Calculate the new equilibrium of National Income. (All figures are in RM million)
1600
1800
2000
1500
Calculate National Income Equilibrium?
RM 1600
RM 2000
RM 1500
RM 1000
Given: C= 200 + 0.75Yd, I=100, G=50, T= 200.Calculate national income equilibrium
1200
800
600
1000
Which of the following is not held to be constant when measuring the marginal propensity to consume?
the level of income
the level of interest rate
the general level of prices
the availability of credit
Marginal propensity to consume is ______
0.2
0.4
0.8
0.6
If the level of consumption equals the level of national income,_________
the economy is in equilibrium
saving equals consumption
autonomous consumption must be zero
saving is zero
