Use the words in the box to complete the sentences below.

negative	expenditures approach	non-durable
intermediate	income	durable
consumption	economic growth	rises
normative	national income	positive
underground economy	deflation	inflation
income taxes	exports	death rate

1.The selling of illegal drugs is included in the ____________________ _________________.

2.The percentage increase in national output over a year is referred to as _________________ _________________________.

3.When using the _____________________ ___________________ of calculating national income spending on domestically produced consumer durables will be included.

4.The term ____________________can be best defined as the expenditure on goods and services that yield utility.

5.___________________________ is the sum total of all goods produced by a country in a time period, usually one year.

6.When calculating the national income figures, _____________________goods are not counted in order to avoid double counting.

7.A fifty five inch smart television set is an example of a ____________________ consumer good.

8.____________________________is a general decrease in the price level.

9.____________________________economic statements are value statements while

10. ____________________________economic statements are based on facts.

Question 1

(a) What are the origins of the Keynesian theory? In your response, identify the proponent and the issue it sought to explain.

(b)(i) List THREE main tenets of the Keynesian model.

ii Explain TWO of the tenets you identified in b(i) above.

iii. Discuss TWO criticisms of the Keynesian theory