In a private closed economy, when aggregate expenditures equal GDP:
A. consumption equals investment.
B. consumption equals aggregate expenditures.
C. planned investment equals saving.
D. disposable income equals consumption minus saving.
C. planned investment equals saving.
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What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?
What will be an ideal response?
What is the potential drawback if firms follow a price leadership model in an actual market?
A) The price leader's behavior may be interpretted as collusion and be subject to antitrust sanctions. B) Excessive price signalling may force all of the firms to adopt price-taking strategies, which reduces overall profits among the firms. C) Disputes about which firm should be the price leader may lead to price wars. D) Signalling efforts increase the firms' fixed costs of production.
Which of the following would tell us that resources are not flowing to their highest valued uses?
A) short-run economic profits B) short-run economic losses C) song-run economic profits D) Some firms are just breaking even.
The length of time until a bond matures is called the
a. perpetuity. b. term. c. maturity. d. intermediation.