C + I + G + NX equals
A. the income-expenditure multiplier.
B. potential GDP.
C. aggregate expenditure.
D. the output gap.
Answer: C
You might also like to view...
Why is it that a monopolistically competitive firm cannot earn positive economic profits in the long run?
What will be an ideal response?
The Saturn Corporation (once a division of GM) was permanently closed in 2009 . What went wrong with Saturn?
a. Saturn's cars sold at prices higher than rivals Honda or Toyota, so they could not sell many cars. b. Saturn sold cars below the prices of Honda or Toyota, earning a low 3% rate of return. c. Saturn found that young buyers of Saturn automobiles were very loyal to Saturn and GM. d. Saturn implemented a change management view that helped make first time Saturn purchasers trade up to Buick or Cadillac. e. all of the above
An increase in the demand for bonds will increase both the price of bonds and the quantity of bonds held
a. True b. False
Refer to the above table. When output rises from 2 units to 3 units, marginal costs are
A. $41. B. $10. C. $22. D. $7.