In a closed economy, real Gross Domestic Product (GDP) is at equilibrium occurs where
A. saving exceeds planned investment.
B. planned expenditures exceed national income.
C. the C + I + G line crosses the 45-degree line.
D. all of these.
Answer: C
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The business cycle reflects both short-run fluctuations in output and long-run economic growth.
During the antebellum period U.S. tariffs on imported cotton textiles:
a. increased profits for British textile producers. b. decreased the prices of cotton textiles in the U.S. c. were supported by the southern states. d. were harmful to U.S. textile producers and their employees. e. None of the above is correct
Average fixed cost is measured by
a. AVC + ATC b. TFC/TC c. AVC – ATC d. TFC/Q e. TC – VC
If the price elasticity of demand is 1.3, demand is:
A. upward sloping. B. inelastic. C. unit elastic. D. elastic.