← Economics Test
6 Written Questions
6 Multiple Choice Questions
- What we spend on goods and services.
- input prices
- Spend less, GDP will go down
Spend more, GDP will go up
Real interest rates
- Change in savings/Disposable income
- an increase in taxes or decrease in government spending or both, so that the net effect on aggregate demand is a decrease in net government spending
5 True/False Questions
Average Propensity to Save → Consumption/Disposable income
nondiscretionary or built-in stabilization policy → deliberate manipulation of taxes and government spending by the Congress to alter real domestic output and employment, to control inflation, and to stimulate economic growth during a particular period of time
3 reasons for downward slope of AD curve → input prices
Cost-push inflation → What we spend on goods and services.
Average Propensity to Consume → Savings/Disposable income