Suppose output is $440 billion, government purchases are $40 billion, desired consumption is $320 billion, and net exports are $35 billion. Absorption is equal to
A) $405 billion.
B) $420 billion.
C) $435 billion.
D) $440 billion.
A
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The price of the average domestic good or service relative to the price of the average foreign good or service, when prices are expressed in terms of a common currency is called the ________ exchange rate.
A. fixed B. real C. flexible D. nominal
Price floors set a legal minimum price on a product or commodity.
Answer the following statement true (T) or false (F)
Suppose that the demand for medical services can be characterized by the equation P = 100 - Q. Suppose further that the supply of health services can be characterized by the equation P = Q + 50.
(a) What is the equilibrium quantity and price in the market for health services? (b) In an effort to make health services more affordable, the government restricts the price of health services to be no greater than $65. What will happen to the quantity of health services in the market?
The key policy target in the Taylor rule is the:
A. money supply. B. federal funds interest rate. C. average tax rate. D. full-employment budget.