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.Management Sciences
Category: The National Economy
Real GNP is a crude measure of national welfare because it excludes ?
A. consumption
B. investment
C. exports
D. work in the home
Real GNP measures income ?
A. including non-market activities
B. adjusted for inflation
C. including externalities
D. including tax evasion
Aggregate demand in an economy trading internationally with a government sector can be written as ?
A. AD = C + I
B. AD = C + I + G
C. AD = C + I + G + X + Z
D. AD = C + I + G + X – Z
According to the classical economists, the only gainers from growth would be ?
A. landlords
B. peasants
C. The army
D. politicians
Starting from a balanced budget, for a given tax rate, an increasing in income will cause the government budget to ?
A. move into surplus
B. move into deficit
C. remain unchanged
D. None of the above above
Short-run equilibrium output means that aggregate demand __________ actual output?
A. is less than
B. equals
C. is greater than
D. fluctuates around
The percentage of the labor force that is unemployed is the ?
A. unemployment rate
B. labor force rate
C. employment rate
D. unemployment population ratio
Equilibrium in the circular flow of income occurs when ?
A. Injections = withdrawals
B. There is a Bank Holiday
C. Injections withdrawals
D. None of these
The diagram that shows the income received and payments made by each sector of the economy is the ?
A. income-expenditures diagram
B. aggregate demand-aggregate supply diagram
C. circular flow diagram
D. income-price diagram
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