In the long run, if an economy's consumption spending is $5 trillion, its planned investment is $2 trillion, government spending is $1 trillion, net tax revenue is $1 trillion, and household savings are $2 trillion, total output should be
a. $3 trillion
b. $5 trillion
c. $7 trillion
d. $8 trillion
e. $11 trillion
D
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Describe the gaps between real GDP per person in the United States and in other countries. For which countries is the gap narrowing? For which is it widening? For which is it the same?
What will be an ideal response?
All other factors equal, as nominal interest rates decrease, checking account balances should:
A. remain constant. B. be converted to cash. C. increase. D. decrease.
If the demand for a good increased, what would be the effect on the equilibrium price and quantity?
a. Price would decrease, and quantity would increase. b. Price would decrease, and quantity would decrease. c. Price would increase, and quantity would increase. d. Price would increase, and quantity would decrease.
In a given year the nominal growth rate is 7% with inflation and population growth rates of 2% and 1.2% respectively, then real growth rate of GDP per capita is:
A. 3.8%. B. 5.0 %. C. 7.0 %. D. 5.8%.