The Italian economy can be characterized by Equation 24.1.EQUATION 24.1:C = 300 + 0.8Yd G = 400T = 200I = 200Refer to Equation 24.1. At the equilibrium level of output in Italy, saving equals
A. $400.
B. $450.
C. $500.
D. $550.
Answer: A
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If a firm wished to maximize total revenues, it should produce where:
a. marginal cost is zero. b. marginal revenue is zero. c. marginal revenue is equal to marginal cost. d. marginal revenue is equal to price.
Keynesians reject the influence of monetary policy on the economy. One argument supporting this Keynesian view is that the:
a. money demand curve is horizontal at any interest rate. b. aggregate demand curve is nearly flat. c. investment demand curve is nearly vertical. d. money demand curve is vertical.
Historical evidence suggests that monopolization of particular industries had led to lower prices. In such cases the monopolists had reduced profit to increase welfare
Indicate whether the statement is true or false
The combination of high unemployment and high inflation is termed
a. reflation. b. stagflation. c. depression. d. unflation.