Practise multiplier and accelerator processes, growth, sustainability, employment and money through calculations, income-flow or PPC diagrams, data interpretation and policy…
What is a necessary assumption of the Keynesian multiplier model?
increasing average propensity to save
flexible costs and prices
full employment of resources
open economies
A website compares the prices of groceries.
Which function of money is illustrated by this?
medium of exchange
standard of deferred payment
store of value
unit of account
When is an increase in national income most likely to induce an increase in investment spending?
when firms have spare production capacity
when firms use labour-intensive production
when the increase in income is regarded as permanent
when the increase in income is regarded as temporary
The table shows real GDP and unemployment for an economy.
What can be concluded from the data?
Demand-pull inflation is likely to increase.
Potential output is likely to increase.
The balance of payments deficit is likely to increase.
The budget deficit is likely to increase.