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Short Answer Economic Questions

1. What is the formula for AD 2. Which is the largest component of AD 3. If there is an increase in imports what happens to AD? 4. What is the nominal GDP 5. If there is an increase in the rate of income tax what is the effect on AD 6. Define productivity 7. What is the savings ratio? 8. What is gross fixed capital investment 9. If there is an increase in wages what will be the effect on SRAS and AD 10. To increase the value of the exchange rate what needs to happen to interest rates? 11. If there is a depreciation in the exchange rate…