The country of Elbia has a GDP of $2,000 . consumption of $1,300, and government purchases of $400 . Which of the following is equal to $300?
a. domestic investment
b. domestic investment plus net capital outflow
c. domestic investment minus net capital outflow
d. None of the above is correct.
b
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Four friends decide to have a party every Saturday. They decide to contribute to a pool of money that will be spent for the parties. The table shows the maximum amount each friend is willing to contribute for each party:
Number of parties Peter Mary Kate Jacob First party $250 $340 $120 $215 Second party $200 $270 $100 $160 Third party $135 $80 $70 $100 Fourth party $60 $100 $25 $40 If the cost of each party is $225, up to how many parties should they have to maximize total surplus? A) 1 B) 2 C) 3 D) 4
If potential GDP for the fourth quarter of 2012 = $58.5 billion, and real GDP for the fourth quarter of 2012 = $53.7 billion, then the output gap was
A) -8.9%. B) -8.2%. C) 8.2%. D) 8.9%.
Which of the following instances will total revenue or receipts decline?
A) Price rises and demand is inelastic. B) Price falls and demand is elastic. C) Price rises and demand is elastic. D) Price falls and demand is unit elastic.
The annual colonial trade deficit (which equaled 20,000-40,000 pounds sterling in 1768-1772) was mostly financed by:
a. an outflow of specie. b. paper money. c. short-term credit from England. d. payments made by a few very wealthy colonists.