In which of the following situations for an open mixed economy will the level of GDP contract?
A. When C a + S + M exceeds I g + X + T
B. When I g + X + T exceeds C a + S + M
C. When S a + M + T exceeds I g + X + G
D. When I g + X + G exceeds S a + M + T
C. When S a + M + T exceeds I g + X + G
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Suppose a tax of $3 is imposed on each new garden hose that is sold, resulting in a deadweight loss of $22,500 . The supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. Before the tax was imposed, the equilibrium quantity of garden hoses was 100,000 . We can conclude that the equilibrium quantity of garden hoses after the tax
is imposed is a. 75,000. b. 85,000. c. 90,000. d. 95,000.
Suppose the central bank implements a monetary contraction in the current period and is not expected to continue this policy in the future. Explain what effect this policy will have on the shape of the yield curve and on stock prices
What will be an ideal response?
When an economy is operating at the steady state, we know that
A) steady state saving equals consumption. B) steady state saving is less than total consumption. C) steady state saving is equal to depreciation per worker. D) steady state saving exceeds depreciation each year by a constant amount. E) none of the above
All firms in a perfect competition industry
A. produce identical products. B. lose money. C. produce differentiated products. D. are price makers.