Exam 9: Introduction to the Macroeconomy

During a recession, which of the following firms are likely to be profitable?

Which of the following represents a leakage from the circular flow of income by the government?

Explain how in?ation is linked to aggregate demand. What factors will cause the aggregate demand curve to shift?

When the level of wages in an economy fully adjust to changes in inflation, _____.

The long-run aggregate supply curve is _____.

Higher interest rates will lead to an increase in aggregate demand.

Real wages are adjusted for inflation.

The level of total expenditure in an economy is the same as its aggregate supply.

Government deficit can be defined as the _____.

When national output increases and the inflation level falls, the economy is said to be in a(n) _____.

An Indian buying a British car is an example of an injection into the circular flow of income in the UK.

Which of the following statements is true?

List the key macroeconomic outputs and policy inputs in an economy.

What are the components of total expenditure in an economy?

The outer loop of the simple circular flow of income, comprising only households and firms, captures the flow of _____.

_____ will cause both in?ation and national output to fall.

Injections into the circular ?ow of income consist of:

A downward movement along the aggregate demand curve is attributed to _____.

Which of the following could cause the aggregate demand curve to shift to the left?

A situation where both national output and inflation rise is called a(n) _____.