when the level of income _________ there will be a tendency for the trade balance to improve as imports?

A. Increase, increase
B. Falls, increase
C. Falls, fall
D. Increase, fall

Higher export demand __________ output and a higher MPZ __________ output?

A. Reduces, reduces
B. Reduces, increase
C. Increase, reduces
D. Increases, increases

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

The multiplier tells us how much __________ changes after a shift in ____________?

A. Consumption income
B. Investment output
C. Savings investment
D. Output aggregate demand

If the MPC is 0.5 the multiplier is ?

A. 2
B. 1/2
C. 0.2
D. 20

Aggregate demand without a foreign sector is the sum of ?

A. C + 1
B. C + g
C. I + g
D. C + 1 + g

If desired spending in the economy exceeds income we would expect ?

A. Households to save more
B. Firms to produce less
C. Firms to produce more
D. The mpc to change

Nominal GNP measures income ?

A. At the present time
B. Corrected for tax changes
C. Corrected for changes in interest rates
D. At current prices

Real GNP is a crude measure of national welfare because it excludes ?

A. Consumption
B. Investment
C. Exports
D. Work in the home

In a macroeconomic model without foreign trade or a government aggregate demand is the sum of ?

A. Personal saving and private investment
B. Personal saving and personal consumption
C. Personal consumption and private investment
D. None of the above