For an economy, aggregate demand equals:
a. consumption plus investment plus government spending plus exports.
b. consumption plus investment plus government spending plus (exports minus imports).
c. consumption plus investment plus (taxes minus transfers) plus (exports minus imports).
d. consumption plus investment plus government spending plus net exports (imports minus exports).
b
You might also like to view...
During the short run, a firm has enough time to adjust:
a. its technology. b. its fixed inputs. c. its variable inputs. d. all of its inputs-both fixed and variable.
The price of a basket of goods and services in the U.S. is $600 . In Canada the same basket of goods costs 700 Canadian dollars. If the nominal exchange rate were 1.2 Canadian dollars per U.S. dollar, what would be the real exchange rate?
a. 700/600 b. 600/700 c. 700/720 d. None of the above is correct.
Traditional economists prefer simpler models because they give clear-cut results that can better highlight certain important insights.
Answer the following statement true (T) or false (F)
Refer to the above diagram. A price of $60 in this market will result in:
A. a shortage of 50 units. B. a surplus of 50 units. C. equilibrium. D. a surplus of 100 units.