Refer to Table 9.2. (Data are expressed in billions of dollars.)Table 9.2Full Employment Income (Output)Consumers Desire to SpendInvestors Desire to SpendTotal Private SpendingTotal Saving$500$300$250$________$________600375250$________$________700450250$________$________800525250$________$________If the full-employment level of income (YF) in Table 9.2 is $800 billion,
A. The economy is in equilibrium.
B. There is an inflationary gap of $250 billion.
C. There is a recessionary gap of $275 billion.
D. There is a recessionary gap of $25 billion.
Answer: D
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Refer to the table above. If the world price for a pair of trousers is $12, then which of the following statements is true?
A) All the four countries will export trousers. B) All the four countries will import trousers. C) Country A and Country B will import trousers, whereas Country C and Country D will export trousers. D) Country C and Country D will import trousers, whereas Country A and Country B will export trousers.
What do diseconomies of cities include?
(a) Pollution (b) Crime (c) Congestion (d) All of the above
What are the costs to society of inflation? Who is harmed by inflation and who benefits?
What will be an ideal response?
Absolute advantage
a. is the same as comparative advantage b. implies autarky c. means that countries of the same size have the same opportunity cost of producing both goods d. means that a country can produce more of two goods than another country can e. means that a country can produce less of two goods than another country can