İKTİSADA GİRİŞ II - Deneme Sınavı - 24

The multiplier value is always greater than 1.

Great Depression is the period started in 1929 and lasted through 1930s in which a huge economic contraction and very high level of unemployment were experienced. Doğru yanıt " A " dır.

There are mainly three tools for the government to affect the macro economy: Fiscal policy, monetary policy and supply-side policies.

To compare the people’s wealth levels living in various countries, per capita national income figures are used. For this purpose, the figures calculated with national
currency firstly is stated with a common monetary measure. Second, GDP and other income concepts exclude the most valuable activity for an individual: leisure. Third, GDP and other income concepts do not take the quality changes of produced goods into account. Fourth, GDP and other income concepts do not reflect some social costs originated from production of goods and services. Fifth, GDP and other income concepts do not reflect some social costs originated from production of goods and services. Sixth, there are many activities need to be added to GDP in principle but not included actually. Therefore, (d) has incorrect because indicated that GDP and other income concepts do reflect some social costs originated from production of goods and services instead of GDP and other income concepts do not reflect some social costs originated from production of goods and services.

The total of consumption, investment, government and net export expenditures specified above will provide us with GDP. It may be better to formulize this definition of GDP as we will use it in the next chapters frequently. By indicating consumption expenditures with C, investment expenditures with I, government expenditures with G, export income with EX and import expenditures with IM, GDP can be stated with the following formula: GDP = C + I + G + (EX – IM)

Value added equals value of production - value of intermediate goods used in the production process.

The GDP value calculated with current prices in markets is called
GDP at current prices or nominal GDP. The answer is B.

The sale of goods and services produced in a country to other countries is called export. There are a number of factors that determine the export volume of a country. These include income levels, preferences and prices of similar goods in other countries. Limitations that governments put on international trade and the exchange rates can also affect the export volume

If a household spends more than its income, it has to cover the excess of expenditures by borrowing or using the savings made before. This is called negative saving.

The relationship between income level and saving is known as saving function.  Accordingly, the correct answer is C.

The factors that influence the consumption decisions of households are disposable income, wealth, expectations and demographic factors.

Households use the income they earn in three different ways. They can spend their income for the consumption of goods and services, saving money and paying taxes. If we consider that the tax, which will be included in the model later, is not the case at this stage, the income (Y) will be equal to the sum of consumption (C) and savings (S): Y = C + S

If the society consumes more than its income, negative savaing is present in the economy.

If a firm intensively uses the capital stock that it owns, it will want to add that stock. However, if part of the current capital stock is idle, the firm does not tend to make any increase in the capital stock it owns. When we look at the economy as a whole, the fact that the current capacity is used at a higher rate will put pressure on the increase of capital goods production and the expansion of productive capacity. On the other hand, when the capacity utilization rate is low (that is, the amount of plants and equipment that are idle in the economy increases), investment expenditures will also tend to decrease.

225/1500=0.15=%15

Saving function refers to the relationship between income level and savings

A type of leakage arising from the income-expenditure flow is taxes. Taxes lead to compulsory reductions in consumption expenditures. In other words, taxes show the revenue that government transfers from households to itself. Therefore, the autonomous consumption expenditures will also decrease as the government collects these taxes. This reduction in autonomous consumption, which is one of the autonomous components of aggregate expenditures, causes the equilibrium GDP level to decrease.

The correct answer is E.

John Maynard Keynes argued that the economic equilibrium, as put forward by Classical economists, does not mean that the level of full employment income is provided at the same time. According to Keynes, equilibrium income can be achieved at the level of underemployment or overemployment. What is important here is the level of aggregate demand. Full employment in the economy can be achieved by an adequate level of aggregate expenditure. The Keynesian theory argue that the economy is not always be at full employment equilibrium because flexible prices and wages are not always valid. Cevap A şıkkıdır.

There are three types of injections for income- expenditure model developed so far: investments, government expenditures, and exports for an open economy.