GDP in an economy is $4,600 billion. Consumer expenditures are $3,500 billion, government purchases are $900 billion, and gross private domestic investment is $400 billion. Net exports are:
a. -$400 billion
b. +$200 billion
c. +$400 billion
d. -$200 billion
Answer: d. -$200 billion
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
If the national incomes of our trading partners increase, then our:
A. Aggregate demand decreases because C decreases B. Aggregate demand increases because C increases C. Aggregate demand decreases because net exports decrease D. Aggregate demand increases because net exports increase
According to the text, "congestion" is another word for
A) confusion. B) cost. C) inconsiderate behavior. D) shortage.
A company will shut down in the short run if it cannot cover its __________ and will exit the industry in the long run if it cannot cover its __________
Fill in the blank(s) with correct word