A linear consumption function with a positive slope less than one means that if income increases consumption will ?

A. Fall
B. Not change
C. Fluctuate
D. Increase

Purchasing power parity exchange rates are used to ?

A. Compare living standards of different countries
B. Pay wages b multinational companies
C. Estimate the costs of economic growth
D. Convert nominal gdp to real gdp

The key issues of macroeconomics are ?

A. Unemployment
B. Inflation
C. Economic growth
D. All of the above

In the economy when a steel producer sells steel to car producer it is regarded as ?

A. A final good
B. An intermediate good
C. An injection
D. A leakage

Injection into the circular flow are ______ and __________?

A. Consumption investment exports
B. Investment exports transfer payments
C. Investment government expenditure exports
D. Taxes exports, transfer payments

Aggregate demand includes only ?

A. Consumer expenditure government expenditure and investment
B. Consumer expenditure investment government expenditure and exports less imports
C. Consumer debt investment debt and government debt
ConSumer expenditure and investment

Total injection are made up of?

A. Investment + tax + exports
B. Savings + government expenditure + exports
C. Investment + government expenditure + imports
D. Investment + government expenditure + exports

Real GDP is nominal GDP measured in constant ?

A. Taxes
B. Prices
C. Exchange rates
D. Interest rates

If people have rational expectations a monetary policy contraction that is announced and is credible could ?

A. Reduce inflation with little or no increase in unemployment
B. Increase inflation but would decrease unemployment by an unusually large amount
C. Increase inflation with little or no decrease in unemployment
D. Reduce inflation but it would increase unemployment by an unusually large amount

Macroeconomics is the branch of economics that deals with ?

A. Imperfectly competitive markets:
B. Only the long run adjustments to equilibrium in the economy
C. The functioning of individual industries and the behavior of individual decision-making units business firms and households
D. The economy as a whole