MACROECONOMICS BY OLIVIER BLANCHARD
ALL CHAPTERS 1 TO 24 EXAM SCRIPT 2026
TEST PAPER QUESTIONS AND SOLUTIONS
GRADED A+
◉ Macroeconomics. Answer: The study of aggregate behaviour at
the country or
world level
◉ income must equal
expenditure because. Answer: - Every transaction has a buyer and a
seller.
- Every dollar of spending by some buyer is a dollar of
income for some seller.
◉ Circular flow diagram. Answer:
◉ Gross domestic product (GDP). Answer: is a measure of
the income and expenditures of an economy; it is the total market
value of all final goods and
services produced within a country in a given time
period
, ◉ Six important features of GDP. Answer: • Market prices.
• Final goods, not intermediate goods.
• Goods and services.
• Only goods and services currently produced.
• Production within the geographic confines of a country.
• Production within a specific interval of time.
◉ GDP formula. Answer: Y=C+I+G+NX
◉ Y. Answer: output/GDP
◉ C. Answer: consumption; the spending by households
on goods and services.
◉ Ig. Answer: investment; the spending on capital
equipment, structures and inventories
◉ G. Answer: government purchases; the spending on
goods and services by local and central
governments (excluding transfer payments).
ALL CHAPTERS 1 TO 24 EXAM SCRIPT 2026
TEST PAPER QUESTIONS AND SOLUTIONS
GRADED A+
◉ Macroeconomics. Answer: The study of aggregate behaviour at
the country or
world level
◉ income must equal
expenditure because. Answer: - Every transaction has a buyer and a
seller.
- Every dollar of spending by some buyer is a dollar of
income for some seller.
◉ Circular flow diagram. Answer:
◉ Gross domestic product (GDP). Answer: is a measure of
the income and expenditures of an economy; it is the total market
value of all final goods and
services produced within a country in a given time
period
, ◉ Six important features of GDP. Answer: • Market prices.
• Final goods, not intermediate goods.
• Goods and services.
• Only goods and services currently produced.
• Production within the geographic confines of a country.
• Production within a specific interval of time.
◉ GDP formula. Answer: Y=C+I+G+NX
◉ Y. Answer: output/GDP
◉ C. Answer: consumption; the spending by households
on goods and services.
◉ Ig. Answer: investment; the spending on capital
equipment, structures and inventories
◉ G. Answer: government purchases; the spending on
goods and services by local and central
governments (excluding transfer payments).
