Equilibrium in the goods market occurs where
A) real GDP equals nominal GDP.
B) aggregate expenditure equals autonomous consumption.
C) autonomous consumption equals induced consumption.
D) aggregate expenditure equals real GDP.
D
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Genovia produced 10 million tonnes of wheat in a particular year. However, 1 million tonnes got infested with pests and had to be thrown away. How will this affect the calculation of the gross domestic product of the country for that year?
What will be an ideal response?
The textbook states that in attacking moral hazard, having both risk-based capital requirements and risk-based deposit insurance premiums
A) is necessary, to deal with the problem from both sides of the bank's balance sheet. B) is redundant and that one of the policies should be ended. C) is necessary in order to deal with the moral hazard of both bankers and depositors. D) may be redundant in theory but advisable in practice given the difficulty of measuring risk.
In setting premiums, insurance firms face which of the following problems?
a. It is difficult to assign individuals to the correct demographic group. b. Individuals do not want to pay a high premium if that matches their demographic group. c. Individuals do not always have the same characteristics as their demographic group. d. It is difficult to determine premiums for each demographic group.
How do we describe it when a person who's 45 years old saves a large amount of her income for retirement?