Which one of the following is TRUE in an open economy with a government sector?
A. The equilibrium level of real GDP occurs when total planned real expenditures equal real GDP.
B. The equilibrium level of real GDP occurs when planned real investment spending is zero.
C. The equilibrium level of real GDP occurs when real net export spending equals zero.
D. The equilibrium level of real GDP occurs when planned real saving equals government spending.
Answer: A
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Use the figure below to answer the following question.
By how much does Consumer Surplus change after the tax is imposed?
A. increase by $540 B. decrease by $114 C. decrease by $144 D. increase by $486
Goods and services bought by the government account for about ________ percent of total production
A) 8 B) 2 C) 67 D) 17 E) 35
The analysis of Chapter 15 argues that the painfully slow recovery following the Great Recession, in which the accumulation of mistakes during the housing bubble are not being fully corrected, is explained by
A) the Fed's continued attempt to keep interest rates low and "help" the housing sector recover. B) the negative consequences of deficit policies that attempt to "stimulate" the economy. C) both of the above reasons. D) neither of the above reasons.
Which of the following will most likely result from an unanticipated decrease in aggregate supply due to unfavorable weather conditions in agricultural areas?
What will be an ideal response?