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
Leakages from the circular flow are
Investment , savings, government expenditure
Savings,taxes,net of subsidies, imports
Consumption, investment, government expenditure
Consumption , taxes,imports
An existing deflationary gap will be further increased by whihc two of the following
A fall in exports
A rise in tax revenue
A rise in government spending
A fall in imports
Mountains and rivers are
National capital
National wealth
Real capital
International capital
Consumption of fixed capital is also known as
Capital formation
Depreciation
All the above
Option 4 Goes Here
If desired spending in the economy exceeds income we would expect
Households to save more
Firms to produce less
Firms to produce more
The MPC to change
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
The key issues of macro economics are
Unemployment
Inflation
Economic growth
In the circular flow we would expect leakages to _______ injections.
Equal
Be lessthan
Be greaterthan
Be less or greater than
Flow of goods and services between firms and households are
Real flow
Money flow
Flow of capital
