Refer to Table 10.1. Suppose that all of the information given in the Table remains the same except that taxes increase by $1.0 billion and transfers increase by $1.5 billion. Equilibrium real GDP for this economy is equal to
A) $6.25 billion.
B) $17 billion.
C) $25 billion.
D) $47 billion.
C
You might also like to view...
A positive statement is:
a. something good or desirable. b. a call for improvement. c. a statement of opinion. d. a statement testable by facts. e. a suggestion for policy.
Which of the following is a major macroeconomic goal?
a. Low prices b. Fair prices c. Pure competition d. Low unemployment e. High prices
Which of the following is the most likely effect of lower apple juice prices on the price and quantity purchased of orange juice, a substitute product?
a. The price of orange juice will increase, and the quantity purchased will fall. b. The price of orange juice will fall, and the quantity purchased will increase. c. The price of orange juice will increase, and the quantity purchased will increase. d. The price of orange juice will fall, and the quantity purchased will fall.
Human capital refers to the:
A. production per capita. B. skills, experience, and natural talent that determine the productivity of workers. C. the machinery and tools that labor can use for production. D. amount of people a firm has access to for production.