Reference no: EM131162099
1. It is true that a stable economy occurs when
a. total injections into the circular flow are large enough to make up for government tax leakages
b. total leakages from the circular flow are great enough to offset the effects of government spending
c. total planned leakages from the circular flow are exactly equal to total planned injections into the circular flow
d. actual saving is equal to planned investment
2. The measure of income received by persons from all sources is known as
a. personal income
b. national income
c. gross domestic product
d. net national product
3. The best measure of a change in the standard of living is the change in
a. nominal GDP
b. real GDP
c. real per capita disposable income
d. net national product
4. GDP overstates national income because it does not make any adjustment for national debt.
a. true
b. false
5. The operation of the total economy can best be demonstrated by a
a. merry-go-round
b. circular flow
c. Ferris wheel
d. roller coaster
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