Refer to the information provided in Figure 23.2 below to answer the question(s) that follow.
Figure 23.2Refer to Figure 23.2. The line segment BD represents Jerry's
A. consumption when income equals Y1.
B. consumption when income equals zero.
C. saving when income is Y1.
D. saving when income equals zero.
Answer: B
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Which of the following is not among the United States’ economic goals?
a. full employment b. stable prices c. healthy economic growth d. equal distribution of income
The increase in welfare in both countries that results from specialization and trade is called:
A. surplus enhancement. B. exportation surplus. C. gains from trade. D. deadweight gain.
Automatic stabilizers create ________ during recessions from increased government spending on welfare and unemployment insurance, and reduced tax revenues, and create _________ during peak growth periods of the economy from reduced government welfare spending and increased tax revenues
a. fiscal stimulus, fiscal contraction b. fiscal stimulus, fiscal stimulus c. fiscal contraction, fiscal stimulus d. fiscal contraction, fiscal contraction
Consumption = $1,000; investment = $200; net exports = -$50; taxes = $230; private saving = $225; and national saving = $150. Refer to Scenario 26-3. For this economy, government purchases amount to
a. $330. b. $280. c. $305. d. $310.