Consumption spending is $22 million, planned investment spending is $7 million, actual investment spending is $7 million, government purchases are $9 million, and net export spending is $3 million
Based on this information, which of the following is true?
A) Aggregate expenditure is equal to GDP. B) Aggregate expenditure is greater than GDP.
C) Aggregate expenditure is less than GDP. D) There was an unplanned change in inventories.
A
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When does a private solution to a negative externality fail to allocate resources efficiently?
What will be an ideal response?
Refer to the scenario above. If Frank discounts delayed utilities with a weight of 1/4, then which of the following statements is true?
A) He will consume both hotdogs and ice cream. B) He will avoid consuming both hotdogs and ice cream. C) He will consume ice cream but will avoid consuming hotdogs. D) He will consume hotdogs but will avoid consuming ice cream.
High military spending has _____ the economic growth of LDCs.
Fill in the blank(s) with the appropriate word(s).
Use the graph to answer the following question:
Suppose the economy is in equilibrium at point B which is below the full-employment output of point D. If the government implements fiscal policy targeted at moving real GDP back to point D, but crowding out significantly reduces the effectiveness of the fiscal policy, the equilibrium point will likely end up closer to point
A. A. B. B. C. C. D. D.