MACROECONOMICS UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS COMPLETE STUDY GUIDE

MACROECONOMICS UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
COMPLETE STUDY GUIDE

●● Macroeconomics
Answer: The study of aggregate behaviour at the country or
world level


●● income must equal
expenditure because
Answer: - Every transaction has a buyer and a seller.
- Every dollar of spending by some buyer is a dollar of
income for some seller.


●● Circular flow diagram
Answer:


●● Gross domestic product (GDP)
Answer: is a measure of
the income and expenditures of an economy; it is the total market value
of all final goods and
services produced within a country in a given time

, period


●● Six important features of GDP
Answer: • Market prices.
• Final goods, not intermediate goods.
• Goods and services.
• Only goods and services currently produced.
• Production within the geographic confines of a country.
• Production within a specific interval of time.


●● GDP formula
Answer: Y=C+I+G+NX


●● Y
Answer: output/GDP


●● C
Answer: consumption; the spending by households
on goods and services.


●● Ig
Answer: investment; the spending on capital