Crowdly

The use of money as a unit of account is the basic yardstick for measuring ________.

monetary and fiscal policies

economic growth

economic value of goods and services

✅

the economic relationship between supply and the quantity demanded

economic disparities

Individuals expect to live

for more years after retirement without any change in total lifetime resources.

Governments raise the

proportion of earned income they collect from households.

The proportion of the

working-age population who are employed rises.

People stop working earlier

in life but keep their annual spending patterns unchanged.

Households choose to

have more children while keeping the same total family income.

Government raises subsidies

paid to full-time students.

If planned aggregate expenditure (PAE) in an

economy equals 1,800 + 0.8Y and potential output equals 10,000, then:

None of the other answers is correct

200 increase in autonomous consumption would close the output gap.

1,000 increase in autonomous consumption would close the output gap.

200 reduction in autonomous consumption would close the output gap.

1,000 reduction in autonomous consumption would close the output gap.

Equilibrium output is 10,000, so no policy adjustment is needed.

The following figure was taken from the Australian Bureau of Statistics (ABS) website and it reports the unemployment rate in Australia.

In what year Australia had the lowest structural unemployment?

The following

national accounting data are available for an economy for 2018.

What is the level of household saving

this economy?

The country of FARAWAY is a closed economy.

FARAWAY’s national saving (NS) and investment (I) are given by the following equations:

where r is the real interest rate.

Assume the government of FARAWAY reduces the budget surplus by 5.

Which of the following effects will occur?

Decrease in national saving, rise in real interest rate.

Increase in national saving, fall in investment.

Increase in investment, rise in the real interest rate.

Decrease in national saving, rise in investment.

Increase in investment, fall in the real interest rate.

This economy is experiencing a decrease in the level of unplanned inventories and this change in inventories will cause producers to increase their production.

Consider the following graph that depicts an economy modelled using a short-run Keynesian model where Y is real GDP.

The economy is currently at point Y3 in the above graph. From this information and the graph you conclude that:

None of the other answers are correct.

There will be no change in the aggregate output.

This economy is currently experiencing an economic boom.

This economy is experiencing an increase in the level of unplanned inventories and this change in inventories will cause producers to decrease their production.

The table below is from the Australian Bureau of Statistics, release titled "Australian National Accounts: National Income, Expenditure and Product; Quarterly estimates of key economic flows in Australia, including gross domestic product (GDP), consumption, investment, income and saving".

https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/mar-2024

GDP per capita is measured by GDP/Population. What could explain the changes in GDP per capita presented in the table below?

Assume the saving and investment market is in equilibrium. This equilibrium is presented by the following diagram:

Assume there was an increase in government budget deficit. Which diagram below best depicts this change?