Figure 10-6
In the short-run equilibrium depicted in , the economy's output is
a.
equal to potential GDP.
b.
less than potential GDP.
c.
greater than potential GDP.
d.
equal to the economy's full-employment output.
b
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Assume that Japan and the United States are engaged in a system of flexible exchange rates. One US dollar will purchase how many Japanese Yen?
Use the following table to answer the next question.All figures below are in billions of dollars.Domestic Output or Income (RGDP = DI)Consumption$240$244250250260256270262280268290274300280310286320292When there is no investment in this private closed economy (an economy with only a private sector and no international trade), the equilibrium level of real GDP will be
A. $240 billion. B. $270 billion. C. $260 billion. D. $250 billion.
Jane supports herself at college by working in a bookstore earning $300 a month, which she spends entirely every month. If she gets a salary increase of $100 a month, she spends $90 more dollars on consumption expenditure. Jane's MPC is equal to
A) 0.10. B) 0.90. C) 1.00. D) 0.50. E) $90.
Who among the following exercises a right to pollute?
A) A cigarette smoker B) An automobile driver C) An owner of a coal-fired electrical utility D) A user of household sprays E) All of the above.