If total consumption is $5 billion, investments $2 billion, government purchases $1 billion, exports $1 billion, and imports $3 billion, the GDP must equal:
A. $12 billion.
B. $6 billion.
C. $9 billion.
D. $3 billion.
Answer: B
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The Great Depression is still the subject of controversy, including the question(s) of
(a) what caused the initial downturn. (b) why the economy contracted for so long (1929 to 1932) and why it contracted so much (real GNP fell about 30%). (c) whether government policy helped or hindered the recovery attempt. (d) all of the above.
Which of the following was a cause of the savings and loan crisis that occurred in the 1980s?
a. the increasing rates of inflation throughout the 1970s b. savings and loans investing in high-risk ventures including real estate projects c. government deregulation in the 1980s d. all of the above
The price system is based on the law of __________________.
Fill in the blank(s) with the appropriate word(s).
If price rises, what happens to quantity supplied of a product?
What will be an ideal response?