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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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.
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.