Exam 25th

Question 1

what are the 7 macroeconomic objectives?

Answer 1

gdp growth
inflation
dept
unemployment
inequality
balance of payments
sustainability

Question 2

definition of wealth

Answer 2

wealth = total value of financial assets

Question 3

definition of aggregate demand

Answer 3

aggregate demand = all of the demand from wherever added up.

Question 4

calculation for aggregate demand

Answer 4

aggregate demand = consumption + investment + government spending + (exports - imports)

Question 5

what is gross investment

what is net investment

Answer 5

gross investment = total investment on new capital

net investment = gross investment - capital consumption

Question 6

what are real terms?

Answer 6

allowing for inflation

Question 7

what are the three sectors of fiscal policy

Answer 7

welfare spending (transfer payments)
public service (police)
state investment (new roads)

Question 8

definition of exchange rates

Answer 8

the value of one currency compared to anouther