Where Y is GDP, C is consumption, I is investment, G is government purchases, T is net taxes, and there is no international trade, the government budget deficit equals:
A. Y + T - G.
B. T - G.
C. Y - G.
D. G - T.
Answer: D
You might also like to view...
Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3
A) the quantity demanded is economically efficient but the quantity supplied is economically inefficient. B) too many consumers want to buy iced tea. C) the quantity supplied is greater than the economically efficient quantity. D) economic surplus is maximized.
Cost-push inflation occurs because of a:
a. Leftward shift in the aggregate demand curve b. Rightward shift in the aggregate demand curve c. Leftward shift in the aggregate supply curve d. Rightward shift in the aggregate supply curve
If someone produced too much of a good, this would suggest that:
A. rational choice cannot be applied to many economic decisions. B. the good was produced past the point where its marginal cost exceeded its marginal benefit. C. certain goods and services such as education and health care are inherently desirable and should be produced regardless of costs and benefits. D. the good was produced to the point where its marginal benefit exceeded its marginal cost.
Refer to the information provided in Figure 31.2 below to answer the question(s) that follow.
Figure 31.2Refer to Figure 31.2. An economy that chooses to be at Point ________ can achieve higher economic growth rate in the future.
A. A B. B C. C D. D