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QUESTION 5 According to the analysis of the British economist John Maynard Keynes,... a) markets coordinate supply and demand so that a policy of laissez-faire would prevent recessions. b) economic fluctuations were the cumulative result of mistakes made by businesses and households in an uncertain world. c) government demand could be used to smooth fluctuations in aggregate output and income. d) supply creates its own demand through the circular flow of economic activity QUESTION 6 Assume that in South Africa, total production equals R10billion while due to COVID-19, aggregate spending dropped to only R7billion, then ______ a) Firms will experience and unplanned increase in inventories due to a shortage in the market b) Firms will experience and unplanned decrease in inventories due to a shortage in the market c) Firms will experience and unplanned increase in inventories due to a surplus in the market d) There is no change in inventory. QUESTION 7 If an economy's aggregate expenditure is $1.2 trillion, consumption expenditure is $800 billion, and government spending is $300 billion, what is the economy's net exports? a) $100 billion b) $200 billion c) $300 billion d) $400 billion QUESTION 8 Holding all other things constant, an increase in the nominal GDP by 6% can correspond to... a) ...a decrease of real GDP by 4% and an increase of prices by 10%. b) ...an increase of real GDP by 9% and an increase of prices by 3%. c) ...an increase of real GDP by 5% and a decrease of prices by 1%. d) ...a decrease in real GDP by 3% and an increase of prices by 3%. QUESTION 9 If GDP (measured in billions of current dollars) is R5,465, consumption is R3,657, investment is R741, and government purchases are R1,098, then net exports are: a) R131. b) Zero c) In trade surplus d) In trade deficit

QUESTION 5

According to the analysis of the British economist John Maynard Keynes,...

a) markets coordinate supply and demand so that a policy of laissez-faire would prevent recessions.
b) economic fluctuations were the cumulative result of mistakes made by businesses and households in an uncertain world.
c) government demand could be used to smooth fluctuations in aggregate output and income.
d) supply creates its own demand through the circular flow of economic activity

QUESTION 6

Assume that in South Africa, total production equals R10billion while due to COVID-19, aggregate spending dropped to only R7billion, then ______

a) Firms will experience and unplanned increase in inventories due to a shortage in the market
b) Firms will experience and unplanned decrease in inventories due to a shortage in the market
c) Firms will experience and unplanned increase in inventories due to a surplus in the market
d) There is no change in inventory.

QUESTION 7

If an economy's aggregate expenditure is $1.2 trillion, consumption expenditure is $800 billion, and government spending is $300 billion, what is the economy's net exports?

a) $100 billion
b) $200 billion
c) $300 billion
d) $400 billion

QUESTION 8

Holding all other things constant, an increase in the nominal GDP by 6% can correspond to...

a) ...a decrease of real GDP by 4% and an increase of prices by 10%.
b) ...an increase of real GDP by 9% and an increase of prices by 3%.
c) ...an increase of real GDP by 5% and a decrease of prices by 1%.
d) ...a decrease in real GDP by 3% and an increase of prices by 3%.

QUESTION 9

If GDP (measured in billions of current dollars) is R5,465, consumption is R3,657, investment is R741, and government purchases are R1,098, then net exports are:

a) R131.
b) Zero
c) In trade surplus
d) In trade deficit

QUESTION 5

According to the analysis of the British economist John Maynard Keynes,...

a) markets coordinate supply and demand so that a policy of laissez-faire would prevent recessions.
b) economic fluctuations were the cumulative result of mistakes made by businesses and households in an uncertain world.
c) government demand could be used to smooth fluctuations in aggregate output and income.
d) supply creates its own demand through the circular flow of economic activity

QUESTION 6

Assume that in South Africa, total production equals R10billion while due to COVID-19, aggregate spending dropped to only R7billion, then

a) Firms will experience and unplanned increase in inventories due to a shortage in the market
b) Firms will experience and unplanned decrease in inventories due to a shortage in the market
c) Firms will experience and unplanned increase in inventories due to a surplus in the market
d) There is no change in inventory.

QUESTION 7

If an economy's aggregate expenditure is 1.2 trillion, consumption expenditure is800 billion, and government spending is 300 billion, what is the economy's net exports?

a)100 billion
b) 200 billion
c)300 billion
d) 400 billion

QUESTION 8

Holding all other things constant, an increase in the nominal GDP by 6% can correspond to...

a) ...a decrease of real GDP by 4% and an increase of prices by 10%.
b) ...an increase of real GDP by 9% and an increase of prices by 3%.
c) ...an increase of real GDP by 5% and a decrease of prices by 1%.
d) ...a decrease in real GDP by 3% and an increase of prices by 3%.

QUESTION 9

If GDP (measured in billions of current dollars) is R5,465, consumption is R3,657, investment is R741, and government purchases are R1,098, then net exports are:

a) R131.
b) Zero
c) In trade surplus
d) In trade deficit

Added by Sabelo H.

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