Valeria is a closed economy, where consumption totals $3 billion, tax payments are $300 million, government spending is $1 billion, and GDP is $5 billion. Private saving amounts to
a. $1.7 billion and Valeria's government runs a budget deficit.
b. $1.7 billion and Valeria's government runs a budget surplus.
c. $1 billion and Valeria's government runs a budget deficit.
d. $1 billion and Valeria's government runs a budget surplus
a
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Competition among sellers generates
A) allocative efficiency. B) productive efficiency. C) equity. D) scarcity.
Surveys of consumers regarding labor standards indicate that they are willing to pay:
a. a large amount for a large improvement in working conditions. b. a small amount for a large improvement in working conditions. c. nothing for a large improvement in working conditions. d. a small amount for a small decline in working conditions.
Recall the Application about the success of the 2009 stimulus package to answer the following question(s).The Obama stimulus package was implemented to assist the economy in its recovery from recession. This package was designed to shift:
A. aggregate demand to the right. B. aggregate demand to the left. C. aggregate supply to the left. D. aggregate demand and aggregate supply to the left.
An individual's labor supply curve might be backward bending.
a. true b. false