TOPIC 1: What is macro?

Question 1

Aggregate expenditure is equal to

Answer 1

Aggregate demand + aggregate income + c+i+g+(x-m)

ALL OF THE ABOVE

Question 2

GDP=

Answer 2

C+I+G+(X-M)

Question 3

GDP INCOME APPROACH 4 FACTORS

Answer 3

Compensation of employees
Mixed income
Indirect taxes - subsidies
Gross operating surplus

Question 4

Consumption is £672, Investment is £188, Government Expenditure is £173 and Aggregate Expenditure is £1092. What are net exports equal to?

Answer 4

ANSWER IS -MINUS – THE ANSWER WRONGG!!

Question 5

Which of the following is the technical definition of a recession?

Answer 5

A fall in real GDP for at least two successive quarters

Question 6

Suppose that the economy does not trade with the rest of the world. You are told that GDP last year was £1,000. If Consumption was £650 and Government Expenditure was £200, what was Investment equal to

Answer 6

£150

Question 7

Which of the following statements is true?

Answer 7

GDP excludes depreciation of capital

Question 8

The definition of Gross Domestic Product has four parts. Choose these parts from the list below:

Answer 8

In a given time period
Market value
Final goods and services
Produced within a country

Question 9

The Green Economy produces bikes and shoes. In 2017, it produced 2 bikes and 2 shoes. The price of bikes was £6 and the price of shoes was £4. What was nominal GDP in the Green Economy in 2017?

Answer 9

£20

Question 10

The Red Planet produces pens and phones. In 1990, it produced 6 pens and 2 phones. The price of pens in 1990 was £3 and the price of phones in 1990 was £10. In 2017, it produced 2 pens and 6 phones.The 2017 prices were £6 (pens) and £3 (phones).

What was the Red Planet’s real GDP in 2017? (Use 1990 as the base year.)

Answer 10

79 WRONG