Refer to the information. If the economy's tax schedule was T = .2Y rather than T = T 0 = 30, the equilibrium GDP would be:
Answer the question on the basis of the following information for a mixed
open economy. The letters Y, C a , I g , X n , G, and T stand for GDP, consumption, gross
investment, net exports, government purchases, and net taxes respectively. Figures are in
billions of dollars.
A. $387.5.
B. $518.5.
C. $316.
D. $412.
A. $387.5.
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Changes in business activity are
A) referred to as business fluctuations. B) referred to as the ebb and flow of business. C) always undesirable. D) caused by the changing seasons every year.
During the period of the 1930s,
A. wages and prices adjusted quickly to changing economic conditions. B. the classical view of the macroeconomy was validated by prevailing economic conditions. C. wages adjusted quickly as expected by Say's law but other prices, especially agricultural prices, did not. D. the sluggish adjustment of the economy caused economists to look at alternatives to the classical model.
Which of the following would cause the equilibrium price of apple juice to decrease and the equilibrium quantity of apple juice to increase?
A) a decrease in the price of apples B) an increase in the price of apples C) an increase in the price of orange juice, a substitute for apple juice D) a decrease in the price of granola bars, a complement for apple juice
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.