national income

Question 1

macroeconomic equilibrium, economic growth rising and falling

Answer 1

• injections = withdrawals
• injections > withdrawals
• withdrawals > injections

Question 2

shift of AD - SHOW WITH KEYNESIAN, EASIER

Answer 2

changes in any component of AD

Question 3

shift of SRAS

Answer 3

changes in cost of production - wages, raw met, taxes

Question 4

shift of lras - use classical

Answer 4

anything that increases resource

Question 5

equilibrium level of real national input

Answer 5

the level of output produced in an economy where
aggregate demand (AD) equals aggregate supply (AS), point of full employment

Question 6

changes in equilibrium level of real national input as AD curve shifts 3

Answer 6

• indicates rising or falling components
• With higher demand,
  businesses are willing to produce more output at any given price level
• thus increases real gdp and increases in price level

Question 7

evaluation of changes due to AD curve shift

Answer 7

• impact on the price level is more pronounced in the short run when wages and prices are less flexible
• Magnitude of Shift

Question 8

changes in equilibrium level of real national as SRAS curve shifts effect 2

Answer 8

• economic growth as more supply
• price level decreases

Question 9

what does lras shift indicate

Answer 9

Changes in Resource Availability
increase in the economy’s potential output.

Question 10

limitations of multiplier effect to impact government policies

Answer 10

• its not immediate
• economists disagree ab the exact size
• difficult to calculate