Q8 If a Keynesian economist is advocating the current economic policy to increase government spending, what is likely to be the state of the current economy?

• The economy is experiencing a recessionary gap.
• The economy is experiencing an inflationary gap.
• The economy is experiencing natural unemployment at potential GDP.

Q9 If an economy is defined by the following algebraic equation: C = 209 + 0.6 (Yd). What does the (Yd) in this algebraic equation represent?

• disposable income
• pre-tax income
• discretionary income

Q10 Which following factor does not influence autonomous expenditure?

• Investments
• Net exports
• National income