Question

Ex-ante and ex-post concepts apply to which macro variables, and for what purpose are they essential?

Options

• Taxes and transfers; essential for fiscal federalism

• Consumption, investment and output; essential for understanding income determination

• Population and labour force; essential for demographic analysis

• Money supply and velocity; essential for controlling inflation

Answer 1

Ex-ante and ex-post concepts apply to macro variables like consumption, investment and output. They are essential for understanding income determination, since planned (ex-ante) magnitudes drive equilibrium analysis while realized (ex-post) values appear in national income accounts.