18>> Which of the following is not an example of government expenditure?

Select one:

a.Employing a public school teacher

b.A social security payment to an elderly person

c.Aid for families with dependent children

d.Purchase of machinery for businesses

19>>Which of the following will cause planned investments to increase?

Select one:

a.the economy is projected to enter a recession

b.there is anticipation that the country will go on lockdown for the next 3 months

c.the cost of labour increases relative to the cost of capital

d.the cost of capital increases relative to the cost of labour

20>>The accelerator principle states:

Select one:

a.if an increase in investment is expected, output will increase

b.if an increase in growth of investment is expected, output will increase

c.if an increase in growth of output is expected, investment will increase

d.small swings in investment are associated with large swings of output

21>>. The accelerator principle shows the relationship between

Select one:

a.National income and inflation

b.National income and unemployment

c.Inflation and unemployment

d.National income and the level of private investment

22>>The economy is currently in a recession due to a reduction in consumer confidence. Output and real interest rate are below their levels prior to the recession. Six months later, the economy has returned to its equilibrium level of output and the previous interest rate. Which of the following must have happened?

Select one:

a.The government increased purchases of goods

b.The government increased the money supply

c.The government decreased the money supply

d.The government increased taxes