In the above figure, what is the equilibrium level of real GDP with government and the foreign sector?
A. $3.0 trillion
B. $4.0 trillion
C. $2.0 trillion
D. $2.5 trillion
Answer: B
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The difference between the Baumol-Tobin formulation of the demand for money and the Keynesian-Baumol formulation is that
A) the speculative demand is a function of income. B) the transaction demand is a function of interest rates as well as income. C) the transaction demand is a function of wealth. D) Both B and C are correct.
What country has the greatest degree of globalization?
a. United States b. Germany c. South Korea d. China
In monopolistic competition if there is profit, there is:
A. a signal for new firms to enter. B. a motive for existing firms to increase prices. C. proof that advertising works. D. a motive for existing firms to decrease prices.
One union follows another union and starts a work stoppage. This is an example of a
A) sympathy strike. B) secondary boycott. C) closed shop. D) union shop.