Answer the question on the basis of the following data. All figures are in billions of dollars. Picture Gross Private Domestic Investment 46 Exports of the US 9 Disposable Income 190 Personal Saving 10 Government Purchases 84 Net Foreign Factors Income 10 Consumption of Fixed Capital 52 Dividends 13 Imports of the US 12 Taxes on Production and Imports 22 Personal Taxes 38 Social Security Contributions 23 Statistical Discrepancy 0 The economy characterized by the above data is:
a) experiencing inflation because disposable income exceeds personal income.
b) experiencing declining production capacity because net investment is negative.
c) in a depression because personal income exceeds disposable income.
d) experiencing expanding production capacity because net private domestic investment is positive.
b) experiencing declining production capacity because net investment is negative.
You might also like to view...
Refer to Figure 3-5. At a price of $15, the quantity sold
A) is 2 units. B) is 4 units. C) is 6 units. D) cannot be determined.
A firm experiences increasing returns to scale; that is, doubling all its inputs more than doubles its output. What can be inferred about the firm's short-run costs?
What will be an ideal response?
In the article "After iPhone Price Cut, Sales Are Up by 200 Percent,"
A. There was no way to calculate the price elasticity of demand. B. The survey of quantity demanded after a price change for the iPhones showed that iPhones are an inferior good. C. The demand for iPhones is highly elastic. D. The demand for iPhones is inelastic.
Refer to Exhibit 2-4. This economy is productive
 ANSWER 1.png)