If the marginal propensity to consume on domestic products is 0.9 the size of the multiplier is ?
A. 10
B. 1
C. 9
D. 0.1
To anticipate what the economy is going to do next the government will look at ?
To anticipate what the economy is going to do next the government will look at ?
A. Lagging indicators
B. Flashing indicator
C. Coincidental indicators
D. Leading indicators
The socially optimal rate of growth is ?
The socially optimal rate of growth is ?
A. Zero
B. Negative
C. Where the marginal social benefit = the marginal social cost
D. Total social costs are minimised
Potential growth measures ?
Potential growth measures ?
A. the growth of the fastest economy in the world
B. The fastest growth an economy has ever achieved
C. The present rate of growth of an economy
D. The rate of growth that could be achieved if resources were fully employed
If labour productivity per week is 200 units and there are 5 employees what is the total output ?
If labour productivity per week is 200 units and there are 5 employees what is the total output ?
A. 40 units
B. 195 units
C. 1000 units
D. 200 units
In a boom ?
In a boom ?
A. Unemployment is likely to fall
B. Prices are likely to fall
C. Demand is likely to fall
D. Imports are likely to grow
Which of the following is an injection into the economy ?
Which of the following is an injection into the economy ?
A. Investment
B. Savings
C. Taxation
D. Imports spending
A deflationary policy could include ?
A deflationary policy could include ?
A. increasing injections
B. Reducing taxation rates
C. Reducing interest rates
D. Reducing government spending
Injections are?
Injections are?
A. Assumed to be exogenous
B. Assumed to be a function of national income
C. Decrease aggregate demand
D. Decrease the investment into an economy
A significant increase in the government budget deficit is likely to ?
A significant increase in the government budget deficit is likely to ?
A. Reduce injections into the economy
B. Reduce national income
C. Move the economy away from full employment
D. Boost aggregate demand