Refer to the information. The equilibrium GDP will be:
Answer the question on the basis of the following information for a private closed economy, where I g is gross investment, S is saving, and Y is gross domestic product (GDP).
A. $160.
B. $400.
C. $360.
D. $480.
B. $400.
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If banks do not loan out all their excess reserves, then the real world multiplier is
A) not related to 1/RR. B) larger than 1/RR. C) smaller than 1/RR. D) equal to 1/RR.
In the long run, the price level is determined by aggregate supply
a. True b. False Indicate whether the statement is true or false
Without more information, the supply and demand model cannot predict the effect on price of:
A. a simultaneous decrease in quantity demanded and increase in quantity supplied. B. a simultaneous decrease in demand and increase in supply. C. a simultaneous increase in demand and increase in supply. D. a simultaneous increase in demand and decrease in supply.
The In the News article titled "Great Recession Officially Ended Last Year" states that the recession that started in December 2007 lasted until June 2009. The National Bureau of Economic Research took over a year to announce that the recession had ended. This suggests that
A. Measurement difficulties prevent policy makers from identifying what is happening in the economy. B. Economists could not agree on policy priorities. C. There are significant lags in response to policy. D. The political business cycle is to blame for the economic situation.