Use the following table to answer the next question. All figures in the table below are in billions of dollars.RGDPAggregate Expenditures (Closed Economy - No International Trade)ExportsImports$400$440$50$60450480506050052050605505605060600600506065064050607006805060If this economy were closed to international trade, then the equilibrium real GDP would be ________ billion and the multiplier would be ________.
A. $600;5
B. $600;4
C. $500;5
D. $500;4
Answer: A
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Table 7-1 Workers Toys1 5212322430535? ? ? In Table 7-1, the average physical product after five workers are hired is ?
A. 5. B. 6. C. 7. D. 8.
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
If policy makers do nothing in response to an inflationary gap, what will happen?
a. a rapid movement toward lower unemployment and higher inflation b. a rapid movement toward lower unemployment and lower inflation c. a slow movement toward higher unemployment and higher inflation d. a slow movement toward lower unemployment and lower inflation
Consider the market for chicken. Assuming that chicken and beef are substitutes, an increase in the price of beef will:
A. decrease the demand for chicken creating a lower price and a smaller amount of chicken purchased in the market. B. decrease the supply of chicken creating a higher price and a smaller amount of chicken purchased in the market. C. increase the demand for chicken creating a higher price and a greater amount of chicken purchased in the market. D. increase the supply of chicken creating a lower price and a greater amount of chicken purchased in the market.