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Unit 3.1-3.2 and 3.5-3.7: Revision quiz

1. National income measures

 

 

2. Real GDP is equal to nominal GDP after adjustment is made for

 

3. In the model of the circular flow of income

 

 

4. If there is an increase in injections such that injections are greater than withdrawals, the most likely effect on national income is that

 

5. The diagram below shows two aggregate demand curves AD1 and AD2 and the long-run aggregate supply curve LRAS of an economy in equilibrium at Y

A change in the price level to PL2 is likely to have been caused by

 

 

 

 

 

 

 

 

6. The shift upwards in aggregate demand can be caused by

 

7. Which one of the following factors will not result in a shift to the right in aggregate supply?

 

8. The diagram below shows two long-run aggregate supply curves LRAS1 and LRAS2 and an aggregate demand curve AD of an economy in equilibrium at Y1/Y2.

The rightward shift in the LRAS curve represents

 

 

 

 

 

 

 

9. According to many classical economists, an increase in long-run aggregate supply will lead to

 

10. The macroeconomic performance of the UK economy may be undermined by supply shocks, for example

 

11. Aggregate demand is defined as

The above definitions have no mention of total i.e. the total demand for goods and services at any given price level in a given period

12. Which one of the following is a characteristic of consumption?

 

13. As a component of aggregate demand, investment is best defined as total expenditure in the economy by

 

14. The multiplier theory of investment is concerned with how

 

15. Which one of the following is likely to lead to an increase in saving in an economy?

 

16. A decrease in aggregate demand is likely to cause

 

17. The multiplier can be used to demonstrate the way in which

 

18. A short-run aggregate supply curve will shift to the right when

 

19. A fall in the productivity of labour in an economy will lead to

 

20. A fall in long-run aggregate supply can be caused by

 

Total Score:

The questions in this quiz are available as a PDF file at:  Unit 3.1-3.2 and 3.5-3.7 revision quiz