At any given price level, equilibrium GDP on the expenditure side occurs when ____.
A. Y = C + I + G ? (X ? IM)
B. Y = C + I – G
C. Y = C + I + G + (X ? IM)
D. Y = C + X + G + (X ? IM)
Answer: C
You might also like to view...
The price elasticity of demand for an agricultural product is 0.4. This value means that, when the quantity decreases 1 percent, the price
A) falls 4 percent. B) rises 4 percent. C) falls 2.5 percent. D) rises 2.5 percent. E) rises 0.25 percent.
The current deficit is
A) the deficit minus government investment. B) the deficit plus net interest payments. C) the deficit minus current expenditures. D) the deficit minus depreciation.
When a person smokes a cigarette in his car and throws the butt out of the window, this is a(n)
A) marginal cost. B) external cost. C) average total cost. D) public cost.
If demand is perfectly elastic, the demand curve is horizontal, and the price elasticity of demand equals 1
a. True b. False Indicate whether the statement is true or false