In the equation Y = C + I + G + NX,
a. Y represents the economy's total expenditure.
b. C represents household expenditures on services and durable goods.
c. all of the variables are always positive numbers.
d. All of the above are correct.
a
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A used car was recently priced at $20,000.00. Seeing the car, Bobby thought, "It's nice, but if I have to pay more than $19,500 for this car, then I would rather do without it." After negotiations, Bobby purchased the car for $19,250.00
His consumer surplus was equal to A) $19,500.00. B) $1,750.00. C) $250.00. D) $0.00.
According to public choice theory, policymakers
A) act in ways to bring about an equitable distribution of society's wealth. B) act in ways to maximize economic efficiency. C) place the interests of the public above their own self-interest. D) are likely to pursue their own self-interest, even if their self-interest conflicts with the public interest.
What are the three categories of transactions in the balance of payments? Give an example of each
People increase their labor supply in response to a temporary increase in government purchases because
A. higher spending today will lead to higher spending in the future, as well. B. interest rates will rise, causing a substitution effect. C. they need to work more to keep up with their neighbors. D. current or future taxes will increase, making them financially worse off.