Refer to the information. If government desired to raise the equilibrium GDP to $650, it could:
Answer the question on the basis of the following information for a mixed
open economy. The letters Y, C a , I g , X n , G, and T stand for GDP, consumption, gross
investment, net exports, government purchases, and net taxes respectively. Figures are in
billions of dollars.
A. raise G by $45 and reduce T by $10.
B. raise G by $40 and reduce T by $30.
C. raise G by $30 or reduce T by $40.
D. raise both G and T by $40.
C. raise G by $30 or reduce T by $40.
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One explanation for the existence of wage differentials in the long run is that
a. not every job is equally appealing to all workers b. all labor markets are perfectly competitive c. workers are equally able to perform every job d. the number of workers varies by market e. population trends influence the demand for labor
If a consumer has an income of $120, the price of X is $5, and the price of Y is $8. Which combination of the two goods is unattainable?
A. 2X and 13Y. B. 8X and 10Y. C. 12X and 8Y. D. 20X and 2Y.
(Consider This) If wages were more downwardly flexible, then we would expect:
A. fewer layoffs during recessions. B. more layoffs during recessions. C. more severe recessions. D. no business cycle fluctuations.
Refer to the data provided in Table 11.1 below to answer the following question(s).
Table 11.1 
Refer to Table 11.1. If the interest rate is 5%, Nashbar Bicycle should
A. not fund any of the projects. B. fund all of the projects except for the employee fitness center. C. fund only the employee fitness center. D. fund all of the projects.