On a Macroeconomic level, if Total Government Revenues exceeded Total Government

Question

On a Macroeconomic level, if Total Government Revenues exceeded Total Government Expenditures, we would expect a/an (Deflationary Gap; Inflationary Gap) and Real GPD to (increase; decrease). Select as appropriate.


If an economy is operating within its Production-Possibility curve, its aggregate supply curve would tend to be (elastic or inelastic). Circle your choice.

True or False. A U.S. citizen owns a wheat farm in Canada. The profits from the farm are included in U.S. GDP, not Canada’s GDP.


True or False. Consider the Income approach and the Expenditure approach to calculating GDP. After adjustments for indirect business taxes and depreciation, the two methods yield the same result.


What causes “demand pull” inflation?


12. What causes “cost-Push” inflation?

Explanation / Answer

if revenues exceed expenditure, we see increase in the real GDP and thus expect an inflationary gap.

aggregate supply will be inelastic, as increase in supply of one good will result in decrease of other compensating the aggregate supply.

it is included in Canada's GDP. (answer is False)

True.

When demand grows faster than the supply, the prices of goods increase. This is called demand pull inflation.

When increase in raw materials, or production costs of goods increase (like oil price etc.), the price of the goods automatically increase resulting in cost push inflation.

Please rate my answer!
Thanks in advance :)

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.