Q.1.1 Which of the following represent injections into the circular flow of income and spending? (a) Exports and investment; (b) Government spending and imports; (c) Government spending and saving; (d) Imports and saving. Q.1.2 In the circular-flow diagram, the goods markets are where: (a) The households purchase goods from firms; (b) Firms purchase goods from government; (c) Firms purchase goods from households; (d) The government purchases goods from households. Q.1.3 Money overcomes the problem of a double coincidence of wants inherent in the barter system through its function as a: (a) unit of account. (b) store of value. (c) medium of exchange. (d) standard of deferred payment

Q.1.1 Which of the following represent injections into the circular flow of income and spending? (a) Exports and investment; (b) Government spending and imports; (c) Government spending and saving; (d) Imports and saving. Q.1.2 In the circular-flow diagram, the goods markets are where: (a) The households purchase goods from firms; (b) Firms purchase goods from government; (c) Firms purchase goods from households; (d) The government purchases goods from households. Q.1.3 Money overcomes the problem of a double coincidence of wants inherent in the barter system through its function as a: (a) unit of account. (b) store of value. (c) medium of exchange. (d) standard of deferred payment

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.A: The Simple Algebra Of Income Determination And The Multiplier

Problem 4TY

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