PracticeMakeup Macro Qs

PracticeMakeup Macro Qs - ECON 1007 Introduction to...

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ECON 1007 – Introduction to Economics II (Macroeconomics) Practice Questions for Chapters 19 to 25 Multiple-Choice: 1. A government budget surplus equals a. net taxes minus government spending on good and services. b. government spending on goods and services minus investment. c. consumption expenditure minus net taxes. d. None of the above. 2. When thirty workers are laid off and cannot find new jobs because they lack the necessary skills, ________ employment has increased. a. cyclical b. structural c. frictional d. discouraged worker 3. An inflationary gap occurs when a. actual GDP is below potential GDP. b. actual GDP equals potential GDP. c. actual GDP is above potential GDP. d. the aggregate demand curve shifts leftward. 4. Which of the following does NOT shift potential GDP? a. A decrease in nominal wages b. Technological innovation c. Labour force growth due to increased immigration d. An increase in the nation’s capital stock due to investment 5. All of the following are included in GDP EXCEPT a. purchases of the services of an attorney. b. purchases of short-lived goods such as ice cream. c. steel production. d. home production. 6. National Asset Formation equals a. S + (T - G) – NX b. I + NX c. C + I + G + NX d. S + (T – G) + NX
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7. National Savings equals a. S + (T - G) b. C + S + G c. C + I + G + NX
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PracticeMakeup Macro Qs - ECON 1007 Introduction to...

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