In a private closed economy, the equilibrium condition for the economy is:
A. AE = C + Ig = GDP
B. AE = G + Ig = GDP
C. AE = C + Ig + G = GDP
D. C + Ig + G + NX = GDP
A. AE = C + Ig = GDP
You might also like to view...
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Price discrimination by a monopoly
A) increases consumer surplus. B) decreases consumer surplus. C) increases the firm's profit. D) Both answers B and C are correct.
If a consumer places a value of $15 on a particular good and if the price of the good is $17, then the
a. consumer has consumer surplus of $2 if he or she buys the good. b. consumer does not purchase the good. c. market is not a competitive market. d. price of the good will fall due to market forces.
Shadow prices:
A. are paid in terms of opportunity costs. B. are set by the government. C. exist only in black markets. D. are illegal.