Use the following data to calculate equilibrium real GDP: C= .75Y, I = $2 trillion, G=$1 trillion and NX = -$0.5 trillion
What will be an ideal response?
Y = 0.75Y + 2 + 1 - 0.5; 0.25Y = $2.5 trillion; Y = $10 trillion
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Adam Smith’s discussion of the production in a pin factory illustrates the law of comparative advantage.
Answer the following statement true (T) or false (F)
Adam Smith wrote in his book "The Wealth of Nations" that competition ________ the entrepreneur.
A. distracts B. shapes C. regulates D. motivates
The field of macroeconomics studies ________ and microeconomics studies ________.
A. variables within a single economy; international variables B. economic aggregates; individual markets C. individual markets; economic aggregates D. international variables; variables within a single economy
Exhibit 5-8 Supply and demand curves for good X
?
In Exhibit 5-8, the price elasticity of supply for good X between points E and X is:
A. 7/5 = 1.40. B. 1/5 = 0.20. C. 5/7 = 0.71. D. 1.