For equilibrium in an open four sector economy:
a) Actual injections = actual withdrawals
b) Planned injections = planned withdrawals
c) Savings = investment
d) Government spending = tax revenue
Answer: b) Planned injections= planned withdrawals
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The aggregate supply and aggregate demand model is used to explain:
A. how individual markets affect other markets. B. how entire markets operate, not just each individual seller within a market. C. the market price determined by all buyers and all sellers interacting in a market. D. how output, prices, and employment are tied together in a single economic equilibrium
Any long-lasting tool that people use to produce goods and services is called
a. a product b. machinery c. capital d. equipment e. labor assistance
Without a central bank, such as the Federal Reserve System, banks, if left to themselves, are likely to
a. hold greater excess reserves than socially desirable during a recession b. create insufficient money when the economy is at full employment c. engage in money creation opportunities when the economy is in a recession d. hold no reserves when the economy is in a recession e. lend the least possible amount when the economy is at full employment
An example of offshoring is when a foreign country sets up operations in the United States and employs American employees
Indicate whether the statement is true or false