In the small closed economy of San Lorena, the currency is the denar. Statistics for last year show that private saving was 60 billion denars, taxes were 80 billion denars, government purchases of goods and services were 70 billion denars, there were no transfer payments by the government, and GDP was 400 billion denars. What were consumption and investment in San Lorena?
a. 270 billion denars, 50 billion denars
b. 250 billion denars, 60 billion denars
c. 260 billion denars, 70 billion denars
d. None of the above is correct.
c
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A decrease in aggregate demand will
A) cause the short-run Phillips curve to shift to the right. B) decrease unemployment. C) move the economy to a lower point on the short-run Phillips curve. D) cause inflation.
If a firm’s activities generate detrimental externalities, the marginal social cost will be less than the marginal private cost.
Answer the following statement true (T) or false (F)
Refer to the accompanying table. To increase output from 33 to 66 units requires ________ extra employee(s) per day; to increase output from 66 to 99 units requires ________ extra employee(s) per day.Output Per DayNumber of Employees Per Day00331662994132716511
A. 1; 2 B. 2; 4 C. 1; 1 D. 2; 1
The supply schedule assumes that factors other than:
A. supply must change. B. supply remain the same. C. price remain the same. D. price must change.