Question

According to Irving Fisher, velocity ________.

A		is determined by institutions that affect the way individuals transact
B		is assumed constant in the short run
C		is affected by institutions only gradually
D		all of the above
E		none of the above

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An increase in autonomous investment in a small open economy will cause ___________.

A lower net capital flows

B a trade deficit to increase

C a trade surplus to shrink

D all of the above

E none of the above

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The total income earned by residents of an economy is known as:

A gross domestic product

B private disposable income

C national income

D gross national product

E none of the above

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The marginal product of labor (MPL) can be calculated from the following ______________

A output and labor

B the share of income and the average output per unit of labor

C the labor share of income and average labor per worker

D the labor share of income and output

E none of the above

Answer 1

1.

D

The velocity money does not change in the short run and it is affected by the monetary policy that affects the transactions taking place in the economy.

2.

D

It will cause decrease in capital outflows, making trade surplus to shrink and deficit to increase due to the increase in autonomous investment.

3.

D

It is the value of final products and services produced using the means that are owned by the citizens of the nation. So, it is considered as GNP, calculated by the income approach.

4.

B