In a mixed open economy, the equilibrium GDP is determined at that point where:
A. S a + M + T = I g + X + G.
B. the 45-degree line and the saving schedule intersect.
C. S a + X + G = I g + T.
D. S a + I g + X = G + T.
A. S a + M + T = I g + X + G.
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The price elasticity of demand for potatoes is estimated to be -1.3, and the quantity demanded of potatoes is 3,000 bushels per week. In this situation, a 4% rise in the price of potatoes would reduce the quantity demanded by
a. 92 bushels per week. b. 120 bushels per week. c. 156 bushels per week. d. 975 bushels per week.
All the following would be a possible loan that the International Monetary Fund might make EXCEPT
A) long-term loans to a nation's government which support growth promoting projects. B) short-term loans to a nation's government. C) long-term loans to countries which are having problems in repaying existing debts. D) a loan to a private firm.
If the interest rate were 5 percent, how much would people be willing to pay for a stock that was certain to yield a $10 per share stream of net earnings continuously in the future?
a. $10 b. $20 c. $200 d. $400 e. $2,000
Refer to the accompanying figure, which shows the market for cups of coffee. What might cause a shift from the original supply curve to the new supply curve?
A. A news report that coffee consumption increases longevity B. An increase in the price of tea C. A new technology that reduces amount of coffee beans needed to make a good cup of coffee D. A storm that wipes out a large part of the coffee crop