INSTRUCTION
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1. Aggregate behaviour is .....
2. Which of the following is an example of a final good or service?
3. If GNP is GHS 625 billion, receipts of factor income from the rest of the world are GHS 25 billion, and payments of factor income to the rest of the world are GHS 50 billion, then GDP is ...
4. Interest paid by businesses is ...
5. If real GDP in 2016 using 2015 prices is lower than nominal GDP of 2016, then....
6. Which of the following is an example of an intermediate good?
7. The demand for corn has increased in May without any change in supply. Eight months later there still has been no change in corn prices. This is an example of a
8. If output is rising and unemployment is falling, the economy must be in a(n)
9. Which of the following statements is false?
10. In the circular flow diagram, firms ..... labour and households ..... goods and services.
Refer to the information provided in Figure I above to answer the questions that follow. 11-16
11. Refer to Figure 1. The equation for this household's saving is ..
12. Refer to Figure 1. The MPS for this household is ..... and the MPC is ..
13. Refer to Figure 1. At income level GHS1,500, this household's saving is ..... than (to) zero and this household's consumption is .... zero.
14. Refer to Figure 1. This household saves -GHS300 at an income level of ...
15. Refer to Figure 1. This household consumes GHS2,000 at an income level of
16. Refer to Figure 1. An increase in the amount of consumption this household makes when this household's income is zero
17. If S= -1,200 + 0.2Y and I = 600, then planned saving equals planned investment at aggregate output level of ...
18. The President of Vulcan hires you as an economic consultant. He is concerned that the output level in Vulcan is too high and that this will cause prices to rise. He feels that it is necessary to reduce output by GHS10 billion. He tells you that the MPC in Vulcan is 0.6. Which of the following would be the best advice to give to the Vulcan president?
19. If a decrease in net taxes in Ghana resulted in a very large increase in aggregate output and a very small increase in the price level, then the Ghanaian economy must have been on the very
20. All of the following shift the short-run aggregate supply curve except a change in
