A production point is economically efficient as long as it lies within the production possibilities set
Indicate whether the statement is true or false
F
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In a certain economy, the components of aggregate spending are given by: C = 100 + 0.9(Y - T) - 500rI = 150 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, the immediate impact on aggregate expenditures of a one-percentage-point increase in the real interest rate (r) from 5 percent to 4 percent is ________, and the eventual impact on short-run equilibrium output is ________.
A. an increase by 15 units; a increase by 150 units. B. an increase by 150 units; a decrease by 1,500 units. C. an increase by 150 units, an increase by 150 units. D. a decrease by 15 units, a decrease by 150 units.
The total of all economic transactions between a nation and the rest of the world is referred to as the
A) balance of payments. B) balance of trade. C) balance of power. D) exchange rate.
An increase in net wealth will: a. increase consumption and saving at each level of income
b. increase saving and decrease consumption at each level of income. c. decrease consumption and saving at each level of income. d. increase consumption and decrease saving at each level of income. e. have no effect on consumption because consumption is a function of income.
Injections to the economy include consumption, investment, and government spending
a. True b. False Indicate whether the statement is true or false