Page 160 - Macroeconomics. book docx_Neat

Macroeconomics – Model Exam (2)

Time: 2 Hours Full Mark: 40

Section A: Multiple Choice Questions (30 Marks)
Choose the correct answer:

1. Aggregate demand includes:

A. C + I

B. C + I + G

C. C + I + G + (X − M)

D. C + S

2. Saving equals:

A. Y − C

B. C − Y

C. I − Y

D. G − T

3. Inflation reduces:

A. Purchasing power

B. Income

C. Production

D. Employment

4. Recession means:

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