Suppose the economy is at an equilibrium when C + I + G + X = $12 trillion. If the economy is currently at a real Gross Domestic Product (GDP) level of $13 trillion, then total planned real expenditures
A. are equal to real Gross Domestic Product (GDP), and there will be no change in real Gross Domestic Product (GDP).
B. are less than real Gross Domestic Product (GDP), and real Gross Domestic Product (GDP) will increase.
C. exceed real Gross Domestic Product (GDP), and real Gross Domestic Product (GDP) will increase.
D. are less than real Gross Domestic Product (GDP), and real Gross Domestic Product (GDP) will decline.
Answer: D
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A decrease in ________ can put your job at risk if aggregate expenditures fall
A) consumer confidence B) the length of a business cycle C) the natural rate of unemployment D) the inflation rate
Intermediate targets are
A) identical to instruments. B) macroeconomic variables that the Fed can influence that are related to the Fed's goals. C) also known as the Fed's tools. D) macroeconomic variables that never get revised.
Trade with the United States during the late 19th and the first half of the 20th century benefited those individuals living in less developed countries by
(a) Boosting their incomes. (b) Restricting markets. (c) Exploiting their resources. (d) Increasing pollution and crime.
The unemployment rate never falls to ________________ percent.
a. three b. five c. zero d. one