1)The government debt is the sum of...

a.All past surpluses minus all past deficits.

b.All past deficits plus all past surpluses.

c.All past deficits.

d.All past deficits minus all past surpluses.

2)Fiscal policy is a government tool to...

a.Stabilise real output.

b.Interest rates.

c.Control the amount of money printed.

d.Keep the economy always operating with a positive output gap.

3)The aggregate supply curve cannot be...

a.Downward sloping.

b.Horizontal.

c.Vertical.

d.Upward sloping.

4)The best way to measure economic growth is by analysing...

a.The stage of the business cycle.

b.The fall in the unemployment rate.

c.The growth rate in real GDP.

d.The speed with which prices rise.