Question

24. If output remains the same, a change in nominal GDP from 2018 to 2019 represents…
[1] economic growth.
[2] an increase in unemployment.
[3] an increase in production.
[4] an increase in the price level.
25. Which one of the following statements is correct regarding consumption and saving in the
Keynesian model?
[1] If total consumption exceeds total income, this is an indication of dissaving.
[2] If the initial income is zero, then total consumption will be equal to total saving.
[3] Given that income does not decrease, a decrease in consumer spending will result in a
proportional decrease in saving.
[4] If autonomous consumption increases, consumer spending will remain the same, ceteris
paribus.

Answer 1

24. an increase in the price level.

25. If total consumption exceeds total income, this is an indication of dissaving.