Podcast Beta
Questions and Answers
Match the following economic concepts with their definitions:
GDP (Gross Domestic Product) = The total value of all goods and services produced within a country's borders GNP (Gross National Product) = The total value of all goods and services produced by the residents of a country, both domestically and abroad NNP (Net National Product) = The total value of all goods and services produced by the residents of a country, both domestically and abroad, minus depreciation NI (National Income) = The total income earned by a country's residents, including wages, profits, and taxes
Match the following economic models with their key assumptions:
Classical Model = Assumes that markets quickly adjust to changes in demand and supply Keynesian Model = Assumes that prices and wages are sticky and do not adjust immediately to changes in demand and supply Monetarist Model = Assumes that changes in the money supply have a direct effect on the economy's output and price level Neoclassical Model = Assumes that individuals make rational decisions based on perfect information and markets are always in equilibrium
Match the following economic policies with their objectives:
Fiscal Policy = Aims to influence the economy through government spending and taxation Monetary Policy = Aims to influence the economy through control of the money supply and interest rates Supply-Side Policy = Aims to increase the economy's potential output by stimulating aggregate supply Demand-Side Policy = Aims to manage aggregate demand to achieve macroeconomic objectives like full employment and price stability
