An open economy's GDP is given by
A. Y = C + I + G.
B. Y = C + I + G + T.
C. Y = C + I + G + S.
D. Y = C + I + G + NX.
Ans: D. Y = C + I + G + NX.
You might also like to view...
The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $350 per month as the legal maximum rent, producer surplus will be
A) d. B) d + e. C) d + g. D) d + c + g.
The tool most frequently relied on by the Fed is
a. interest rate changes. b. changing the money multiplier. c. changing the discount rate. d. open market operations. e. changing the reserve ratio.
Even if the error terms in a regression equation, u1, u2, …, un, are not normally distributed, the estimated coefficients can be normally distributed.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
Figure 12.4There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, the likely change in capital flows in sectors X and Y will eventually________ in industry X and ________ in industry Y.
A. decrease the price to P0; decrease the price to P1 B. increase the price to P1; decrease the price to P1 C. increase the price to P1; increase the price to P0 D. decrease the price to P0; increase the price to P0