Real GDP measures income
Including non market activities
Adjusted for inflation
Including externalities
Including tax evasion
Mountains and rivers are
National capital
National wealth
Real capital
International capital
In the circular flow of income , saving is an injection and investment is a
A leakage
An injection
An intermediate good
A final good
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
An economy which has economic relations to other countries is known as
Closed economy
Open economy
Self reliant economy
Mixed economy
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
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
Nominal GNP measure income
At the present time
Corrected for tax changes
Corrected for changes in interest
At current prices
In an open economy leakages to imports _______ the value of the multiplier.
Reduce
Increases
Do not change
Constant
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