Refer to the graph above for a private closed economy. At the $150-billion level of GDP:
A. Aggregate expenditures are less than real GDP, so GDP will rise
B. Aggregate expenditures are more than real GDP, so GDP will fall
C. Aggregate expenditures are more than real GDP, so GDP will rise
D. Aggregate expenditures will be equal to GDP, so there will be no change in GDP
C. Aggregate expenditures are more than real GDP, so GDP will rise
You might also like to view...
Lucy works as a college instructor for a fixed annual salary of $30,000. She is considering quitting this job and becoming a real estate broker
Lucy believes that as a realtor she has a 40 percent chance to make $60,000 per year and a 60 percent chance to make $25,000 a year. The figure above shows Lucy's total utility of wealth curve (U). Lucy will decide to ________ and she will definitely make this choice because it gives her a greater expected ________. A) keep her current job; income B) keep her current job; utility C) quit her job and become a realtor; utility D) quit her job and become a realtor; income
If Big Scoops, a local ice cream parlor, purchases milk from a grocery store to make their ice cream, this is an example of ________.
A) outsourcing B) forward integration C) using a spot market D) backward integration
If the exchange rate is 2 Brazilian reals per dollar and a meal in Rio costs 20 reals, then how many dollars does it take to buy a meal in Rio?
a. 40 and your purchase will increase Brazil's net exports. b. 10 and your purchase will increase Brazil's net exports. c. 40 and your purchase will decrease Brazil's net exports. d. 10 and your purchase will decrease Brazil's net exports.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant. B. decreases. C. initially increases, then decreases. D. increases.