In a macroeconomic model without foreign trade or a government, aggregate demand is the sum of
Personal saving and private investment
Personal saving and persoanl consumption
Personal consumpton and private investment
Private investment and private consumption
If the government increases spending and raises taxes by just enough to finance this increase it will
Leave output unchanged
Increase output
Reduce output
Increase the MPC
In an open economy leakages to imports _______ the value of the multiplier.
Reduce
Increases
Do not change
Constant
Consumption of fixed capital is also known as
Capital formation
Depreciation
All the above
Option 4 Goes Here
In the circular flow we would expect leakages to _______ injections.
Equal
Be lessthan
Be greaterthan
Be less or greater than
To move from GDP to GNP we must add to GDP the
Depreciation of plant and equipment
Subsidies minus taxes
Net property income from abroad
Taxes minus subsidies
Injections in to the circular flow are
Consumption, investment,exports
Investment,exports,transfer payments
Investment, government expenditure exports
Taxes exports,transfer payments
Flow of goods and services between firms and households are
Real flow
Money flow
Flow of capital
Capital stock is equal to
Capital stock produced during the year
Capital stock produced during the previous year
Opening balance of capital stock increase in capital stock during the year
Capital stock likely to be produced next year
Leakages from the circular flow are
Investment , savings, government expenditure
Savings,taxes,net of subsidies, imports
Consumption, investment, government expenditure
Consumption , taxes,imports
