Which of the following equations represents the expenditure approach?
a. GDP = C + I + G + (X – M)
b. GDP = C – I – G – (X + M)
c. GDP = C + I + G x (X – M)
d. GDP = C – I + G x (X + M)
a. GDP = C + I + G + (X – M)
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A crisis in the Middle East drastically raises the price of petroleum. If the aggregate demand curve does not shift, then aggregate supply will ________, real GDP will ________, and the price level will ________
A) increase; remain the same; increase B) decrease; decrease; increase C) increase; increase; increase D) remain the same; increase; increase E) decrease; remain the same; decrease
The figure above shows two Lorenz curves, one before income redistribution and one after income redistribution. The difference between the two curves equals
A) market income. B) money income. C) the redistribution of income. D) the amount of taxes paid.
Industry Y is a perfectly competitive industry. Assume that as a result of changes in other markets there is a twenty percent increase in the price of variable inputs used by firms in industry Y
After all adjustments have taken place, we would expect the equilibrium price in industry Y to: A) decrease and the number of firms to increase. B) decrease and the number of firms to decrease. C) increase and the number of firms to increase. D) increase and the number of firms to decrease.
What is the most likely effect of the development of cell phones (many use this for time also) on the watch industry?
a. Increased price elasticity of demand for the watch industry because cell phones are complements b. decreased price elasticity of demand for the watch industry because cell phones are complements c. Increased price elasticity of demand for the watch industry because cell phones are substitutes d. decreased price elasticity of demand for the watch industry because cell phones are substitutes