Answer to Question #348437 in Macroeconomics for GIGIG

Question

1. The income obtained by an Italian working in a Romanian company is part of: so

a) the Romanian GNP and the Italian GDP;

b) the Romanian GNP and the Italian GNP;

c) the Romanian GDP and the Italian GNP;

d) none of the above.

2. In case of an IS-LM model, an increase in autonomous taxes will make:

a) IS shift to the right;

b) IS rotate to the left;

c) LM shift to the left;

d) none of the above.

3. In a closed economy the propensity of consumtion is c=0.9 and the tax rate t=0.3. A decrease in the government expenditures by 10 bil. lei will lead to a change in GDP by about:

a) -27 bil. lei;

b) 27 bil. lei;

c) -50 bil. lei;

d) 50 bil. lei;

Answer 1

1. A

2. A

3. B