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.Management Sciences
Category: The National Economy
The index used most often to measure inflation is the?
A. wholesale price index (WPI)
B. GDP deflator
C. Producer price index (PPI)
D. consumer price index
If a result of households wish to save more there is a change in equilibrium income and no change in equilibrium saving this is an example of ?
A. market imperfection
B. the law of diminishing returns
C. the paradox of thrift
D. market failure
When we refer to the hidden economy we mean unrecorded income owing to ?
A. tax evasion
B. poor statistics
C. the lags between statistical collection and publication
D. smuggling
In the economy when a steel producer sells steel to car producer it is regarded as ?
A. a final good
B. an intermediate good
C. an injection
D. a leakage
For given government spending and taxation the government budget deficit will grow in _________ and decline in __________?
A. booms, booms
B. recession, recession
C. booms, recessions
D. recessions, booms
The multiplier tells us how much __________ changes after a shift in ____________?
A. consumption income
B. investment output
C. savings investment
D. output aggregate demand
If the government increases spending and raises taxes by just enough to finance this increase it will ?
A. leave output unchanged
B. increase output
C. reduce output
D. increase the MPC
The underground economy consists of ?
A. legal transactions
B. part of the rail network
C. legal transactions not declared for tax and illegal activities
D. the water distribution system
Total injection are made up of?
A. investment + tax + exports
B. savings + government expenditure + exports
C. investment + government expenditure + imports
D. investment + government expenditure + exports
When investment is assumed to autonomous the slope of the AD schedule is determined by the ?
A. marginal propensity to invest
B. disposable incomes
C. marginal propensity to consume
D. average propensity to consume
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