For an open economy, the equation Y = C + I + G + NX is an identity. If we define national saving, S, as the total income in the economy that is left after paying for consumption and government purchases, then for an open economy, it is true that
a. S = I.
b. S = 0.
c. I = S + NX.
d. S = I + NX.
d
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To standardize a variable you
A) subtract its mean and divide by its standard deviation. B) integrate the area below two points under the normal distribution. C) add and subtract 1.96 times the standard deviation to the variable. D) divide it by its standard deviation, as long as its mean is 1.
When there is a divergence between social costs and private costs in a market, _____
a. the market will always provide an efficient allocation of resources b. there will be too much or too little production and consumption in the market c. there will be an acute shortage of goods and services in the market d. there will be an excess supply of goods and services in the market e. all resources are being used in their highest-valued activity
The quantity of RGDP supplied will decrease in both the short run and long run when the price level falls
a. True b. False Indicate whether the statement is true or false
A fully-funded system
A. never needs to run a surplus. B. has current retirees being paid out of the taxes of current workers and has a sufficient amount of money on hand currently to pay out all future obligations. C. has current retirees being paid out of the taxes of current workers. D. has a sufficient amount of money on hand currently to pay out all future obligations.