Leakages from the circular flow are
Investment , savings, government expenditure
Savings,taxes,net of subsidies, imports
Consumption, investment, government expenditure
Consumption , taxes,imports
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
Consumption of fixed capital is also known as
Capital formation
Depreciation
All the above
Option 4 Goes Here
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
An economy which has economic relations to other countries is known as
Closed economy
Open economy
Self reliant economy
Mixed economy
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
Flow of goods and services between firms and households are
Real flow
Money flow
Flow of capital
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
In the circular flow we would expect leakages to _______ injections.
Equal
Be lessthan
Be greaterthan
Be less or greater than
Nominal GNP measure income
At the present time
Corrected for tax changes
Corrected for changes in interest
At current prices
