Injections in to the circular flow are
Consumption, investment,exports
Investment,exports,transfer payments
Investment, government expenditure exports
Taxes exports,transfer payments
In the circular flow we would expect leakages to _______ injections.
Equal
Be lessthan
Be greaterthan
Be less or greater than
An economy which has economic relations to other countries is known as
Closed economy
Open economy
Self reliant economy
Mixed economy
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
Identify which one among is income earned
Donation to the poor
Old age pension
Scholarship
Salary to the typist
Nominal GNP measure income
At the present time
Corrected for tax changes
Corrected for changes in interest
At current prices
Real GDP measures income
Including non market activities
Adjusted for inflation
Including externalities
Including tax evasion
Which two of the following are excluded when measuring National income?
Value added in the output method
Transfer payments in the income method
Value of intermediate inputs in the output method
Consumer spending in the expenditure method
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
