What is the relationship between aggregate planned expenditure and real GDP at equilibrium expenditure?
What will be an ideal response?
Equilibrium expenditure occurs when aggregate planned expenditure equals real GDP.
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Refer to Monopoly Supplier and Manufacturer. After the merger, the leather company will earn surplus of
The following questions refer to the accompanying diagram, which shows a monopoly leather supplier selling leather to a monopoly shoe manufacturer. The leather supplier initially produces QM and charges the shoe manufacturer PM. Then the leather supplier acquires the shoe manufacturer in a vertical merger.
a. Area A + B.
b. Area A + B + C + D + E.
c. Area F + G + H.
d. Area A + B + C + D + E + F + G + H.
In 2016, interest payments on the national debt accounted for almost _____ of federal outlays
a. 7 percent b. 25 percent c. 14 percent d. 52 percent e. 40 percent
The trade balance includes:
a. Imports and exports of only goods. b. Imports and exports of goods and services. c. Net exports of goods and services plus transfers. d. Net exports of goods and services plus net investment income plus transfers. e. Changes in a nation's reserve assets.
If the MPC is three quarters, then an increase in disposable income will cause
A. consumption to increase, while saving decreases. B. consumption to decrease, while saving increases. C. consumption and saving both to increase, with consumption increasing more than saving.