Quick Quiz (5)

A quick quiz on macroeconomics from section 3 to aid your evening revision.

1) Explain the difference between GDP and GNP

2) State the components of aggregate demand

3) Draw a neo-classical LRAS curve

4) Explain with the use of an appropriate diagram a deflationary gap

5) Give one limitation of fiscal policy

6) Explain structural unemployment

7) Explain how excess monetary growth can cause inflation

8)Explain the difference between progressive and regressive taxation

9) Draw a diagram to illustrate cost push inflation

10) Give one benefit and one limitation of supply side policies

Higher Level students only

11) State the formula for calculating the national income multiplier

12) If the marginal propensity to withdraw in an economy is 0.7, calculate the change to national income following an injection by the government into the circular flow of income of £150m.

13) Briefly outline the accelerator model

14) What is the natural rate of unemployment?

15) How is the Gini coefficient calculated?