The following data about a hypothetical economy are in billions of dollars.Personal Consumption Expenditures$4,500Consumption of Fixed Capital150Gross Private Domestic Investment800Government Purchases950Exports65Imports85Refer to the above data. GDP in this economy is:
A. $6380 billion.
B. $6080 billion.
C. $6230 billion.
D. $6400 billion.
Answer: C
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Given that all countries have the same Cobb-Douglas production function, i.e. Y/N = (K/N)b, a ten-fold difference in per capita income requires a difference in capital per capita by a factor of
A) 10. B) 10b. C) 101/b. D) b.
In 2007, investment in France increased by 7 billion euros. Which of following occurs?
I. an upward shift in the AE curve. II. a leftward shift in the AD curve. III. an increase in the price level and real GDP in the short run. IV. an increase in the price level and no change in real GDP in the long run. A) I, II, III and IV. B) I and III only. C) I, III and IV only. D) III and iv only.
The unintended consequences of the federal deregulation of the interest paid depositors in the savings and loans was
A. increasing the interest rates in the national money market. B. increasing the amount of the loss on existing loans. C. allowing management to make riskier loans. D. affecting the interest rates on existing long term loans.
Exhibit 8-8 Profit maximizing for a monopolist
?
As shown in Exhibit 8-8, if the monopolist produces the profit-maximizing output, total revenue is the rectangular area:
A. OQAP1. B. OQ2BP2. C. OQ3CP3. D. OQ2DP4.