Chapter 3: Determination of Income and Employment
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Multiplier is always:
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If MPC = 1, multiplier is:
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Multiplier works through:
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Multiplier effect is based on:
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If MPS increases, multiplier:
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Higher MPC leads to:
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If MPC = 0.8, multiplier =
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Alternative formula of multiplier:
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Multiplier formula:
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Multiplier shows relation between:
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Government reduces excess demand by:
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Deflationary gap arises due to:
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Inflationary gap arises due to:
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Equilibrium with unemployment is called:
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Full employment level is:
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Deficient demand means:
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Excess demand means:
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AS =
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AD =
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Equilibrium output is where:
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Which affects investment?
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Planned investment is:
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Investment includes:
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Autonomous investment is:
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Investment is assumed to be:
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Break-even point occurs when:
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Relation between MPC and MPS:
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MPS formula:
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MPS stands for:
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Saving function shows relation between:
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If income is zero, consumption equals:
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When income increases, APC:
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APC formula:
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APC stands for:
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Value of MPC lies between:
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MPC formula:
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MPC stands for:
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C̄ represents:
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Formula of consumption function:
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Consumption function shows relation between:
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Equilibrium occurs when:
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Which is an injection?
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Which is a leakage in income flow?
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Aggregate supply is equal to:
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Income is equal to:
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Which sector is NOT included in a two-sector model?
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Aggregate demand in a two-sector economy includes:
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Which assumption is used in macroeconomic models?
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What does ‘ex-post’ refer to?
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What does ‘ex-ante’ mean?
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