Use the following table to answer the next question.All figures below are in billions of dollars.Domestic Output or Income (RGDP = DI)Consumption$240$244250250260256270262280268290274300280310286320292When there is no investment in this private closed economy (an economy with only a private sector and no international trade), the equilibrium level of real GDP will be
A. $240 billion.
B. $270 billion.
C. $260 billion.
D. $250 billion.
Answer: D
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When the rate of interest in the economy falls, there will be
A) an increase in the market price of existing bonds. B) a decrease in the transaction demand for money. C) less investment by businesses. D) an increase in nominal Gross Domestic Product (GDP).
Which of the following exchange rate systems have a legislative commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate?
a. Gold standard b. Gold exchange standard c. Crawling band d. Horizontal band e. Currency board
Figure 11-2
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Which graph in Figure 11-2 best reflects a Keynesian’s view of the impact of raising taxes on saving?
A. 1 B. 2 C. 3 D. 4
Suppose that Chloe opens a dog grooming business in a local shopping center. Which of the following would be an example of a factor of production used by Chloe? (i) her employees' time (ii) brushes, combs, scissors, and clippers (iii) shampoo, water, and flea prevention treatments (iv) Chloe's time spent on bookkeeping and bill paying
a. (i) only b. (i) and (ii) only c. (i), (ii), and (iii) only d. (i), (ii), (iii), and (iv)