C = $5 million + 0.9(1 - 0.1)Y I = $7 million G = $6 million NX = $1 million Based on the above data, the equilibrium level of GDP is
A) $20.9 million.
B) $23.5 million.
C) $100 million.
D) $111.8 million.
C
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If tastes for foreign goods and services go up, then we would expect aggregate expenditure to:
A. increase. B. decrease. C. remain constant. D. increase and then sharply decrease more.
A situation in which each firm chooses the best strategy given the strategies chosen by other firms is called a
A) Nash equilibrium. B) dominant strategy. C) collusion. D) payoff matrix.
If a country has a trade surplus of $40 billion, which of the following can be true?
A. The country's exports are $140 billion, and its imports are $40 billion. B. The country's exports are $110 billion, and its imports are $150 billion. C. The country's exports are $160 billion, and its imports are $120 billion. D. The country's exports are $120 billion, and its imports are $140 billion.
The balanced-budget multiplier is equal to
A) 1. B) the reciprocal of the increase in government expenditures. C) the percentage increase in taxes. D) the percentage increase in government expenditures.