Which of the following is not always correct for a closed economy?
a. National saving equals private saving plus public saving.
b. Net exports equal zero.
c. Real GDP measures both income and expenditures.
d. Private saving equals investment.
d
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In 2009, the Nobel Prize in economics was awarded for work on the effectiveness of social norms in the management of commonly held property to:
A. Arthur Pigou. B. Gary Becker. C. Elinor Ostrom. D. Ronald Coase.
When the exchange rate fluctuates around a fixed central target, allowing for a moderate amount of fluctuation, while tying the currency to the target central rate, the exchange rate is under:
a. a horizontal band. b. a crawling peg. c. a managed float. d. an independent float. e. a currency board.
Suppose that real domestic output in an economy is 300 units, the quantity of inputs is 50, and the price of each input is $9. If the price of each input decreased from $9 to $7, productivity would:
A. remain unchanged and aggregate supply would increase. B. remain unchanged and aggregate supply would decrease. C. increase and aggregate supply would increase. D. decrease and aggregate supply would decrease.
Last quarter Newton computers produced 3,000 computers. Two thousand of these computers were sold to households, 750 were sold to businesses, and 250 were added to Newton's inventory. How many of the computers should have been included in last quarter's GDP?