Macroeconomics, Definitions.

1. GNP can be defined as "the total income earned by a country's factors of production"

True

False

2. "The increase in investment or spending resulting from firms or consumers taking advantage of lower interest rates" Is the proper name for this the "interest rate effect"?

Yes

No

3. In economics, the difference between export revenues and income expenditure is known as ...

Net exports

Net imports

4. "Foregoing current consumption to allow for consumption in the future" What is being defined?

Leakage

Injection

Saving

5. GDP per capita is GDP divided by ...

GNP

The size of the population

The size of the labor force

Twenty-five

6. "The total of all economic activity in a country" What is being defined?

GNP

GDP

Nominal GDP

Deflationary gap

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9. "The effect on spending of changes in the ratio of money balances to income" What is being defined?

Real balance effect

Net export effect

Interest rate effect

10. Define "government spending"

The inflation occuring when government neglect elderly citizens

The spending on goods and services by the government

The spending on goods and services by the individual consumer

Submit

15. "The periodic fluctuations in economic activity measured by changes in real GDP" What is being defined?

Depreciation

Multiplier effect

Business cycle

Accelerator theory

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17. Output method: "Method measuring national income by taking the value of all the goods and services [1] in an economy" Income method: "Method measuring national income by taking the value of all the [2] earned in an economy" Expenditure method: "Method measuring national income by taking the value of all [3] on goods and services in the economy"

[1] = Sold, [2] = Incomes, [3] = Spending

[1] = Sold, [2] = Incomes, [3] = Taxes

[1] = Produced, [2] = Incomes, [3] = Spending

Submit

19. "Income measured in how much it can buy (after inflation)" is Callie's beautiful definition of ...

Disposable income

False income

Real income

20. There are two main types of investment: Replacement investment - when firms spend on capital to maintain the productivity of existing capital, and [...]

Induced investment is when firms spend on capital to increase their output to respond to a higher demand

Explanation

Induced investment is when firms spend on capital to increase their output to respond to a higher demand

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21. "The sale of public, government-owned firms to the private sector" What is this known as?

Deregulation

Interventionist supply-side policies

Privatization

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26. "When the increase in spending on domestic goods and services "multiplies" and results in an even larger increase in real GNP" What is being defined?

Accelerator theory

Multiplier effect

Queuing

Gini effect

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28. Fiscal policy is the set of a government's policies relating to its ...

Money supply

Money supply and control of interest rates

Control of interest rates and taxation rates

Spending and taxation rates

29. Market-oriented supply-side policies are policies aiming to increase potential output by government actions

True

False

Defined here are "interventionist supply-side policies". Market-oriented supply-side policies are policies aiming to increase potential output by allowing markets to operate more freely.

Explanation

Defined here are "interventionist supply-side policies". Market-oriented supply-side policies are policies aiming to increase potential output by allowing markets to operate more freely.

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32. "The level of real output where aggregate demand is equal to aggregate supply is known as the microeconomic equilibrium"

True

False

It's known as the "macroeconomic equilibrium"

Explanation

It's known as the "macroeconomic equilibrium"

33. "A change in aggregate spending on net exports, that results because a change in price level alters the relative prices of exports and imports" What is being defined?

Real balance effect

Net export effect

Interest rate effect

34. "Consumption", when defined as a factor which determines Aggregate demand, can be defined as: "The total spending by consumers on goods and services"

True

False

To be on the safe side, add a "domestic" between "on" and "goods". Otherwise it may apply to spending on imports/exports and that's another factor of AD.

Explanation

To be on the safe side, add a "domestic" between "on" and "goods". Otherwise it may apply to spending on imports/exports and that's another factor of AD.

35. "Policies used to increase the potential output of an economy by increasing quantity or quality of factors of production" Which policies are these?

Fiscal policies

Monetary policies

Supply-side policies

Demand-side policies

Macroeconomics, Definitions.

1. GNP can be defined as "the total income earned by a country's factors of production"

2.

What first name or nickname would you like us to use?

2. "The increase in investment or spending resulting from firms or consumers taking advantage of lower interest rates" Is the proper name for this the "interest rate effect"?

3. In economics, the difference between export revenues and income expenditure is known as ...

4. "Foregoing current consumption to allow for consumption in the future" What is being defined?

5. GDP per capita is GDP divided by ...

6. "The total of all economic activity in a country" What is being defined?

7. Nominal GDP is the value of GDP at [...] prices

8. "The set of official policies governing the supply of money and the level of interest rates in an economy" is the government's [...]

9. "The effect on spending of changes in the ratio of money balances to income" What is being defined?

10. Define "government spending"

11. Real GDP can also be defined as the nominal GDP adjusted for [...]

12. GNP can also be defined as "the net property income from [...]"

13. Given the answer to question 11, the "household income after the deduction of taxes and addition of benefits" should be the [...]

14. Investment is "the addition of capital [...] to the economy"

15. "The periodic fluctuations in economic activity measured by changes in real GDP" What is being defined?

16. The accelerator theory is a theory suggesting that the level of induced investment is determiened by the rate of change of [...]

18. NNP is the GNI minus capital consumption or "[...]"

19. "Income measured in how much it can buy (after inflation)" is Callie's beautiful definition of ...

20. There are two main types of investment: Replacement investment - when firms spend on capital to maintain the productivity of existing capital, and [...]

21. "The sale of public, government-owned firms to the private sector" What is this known as?

22. Real GDP is the value of GDP at [...] prices

23. "The total amount of goods and services produced in an economy at every given price level" What is being defined

24. The gap created when the level of AD in the economy cannot be satisfied given existing resources, is known as a(n)

25. Capital equipment loses its value over time. This is known as depreciation, or [...]

26. "When the increase in spending on domestic goods and services "multiplies" and results in an even larger increase in real GNP" What is being defined?

27. The aggregate demand is the total demand for all [...] goods and services in a period time at a given price level

28. Fiscal policy is the set of a government's policies relating to its ...

29. Market-oriented supply-side policies are policies aiming to increase potential output by government actions

30. [...] is a supply-side policy which involves the removal or reduction of regulations to firms in order to increase aggregate supply

31. The gap created when the level of AD in the economy is not sufficient to buy up all the potential output, is known as a(n)

32. "The level of real output where aggregate demand is equal to aggregate supply is known as the microeconomic equilibrium"

33. "A change in aggregate spending on net exports, that results because a change in price level alters the relative prices of exports and imports" What is being defined?

34. "Consumption", when defined as a factor which determines Aggregate demand, can be defined as: "The total spending by consumers on goods and services"

35. "Policies used to increase the potential output of an economy by increasing quantity or quality of factors of production" Which policies are these?