Refer to the data for a private closed economy. If gross investment is $12 billion, the equilibrium level of GDP will be:
A. $380.
B. $370.
C. $360.
D. $350.
C. $360.
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Fiat money has
A) a great intrinsic value that is independent of its use as money. B) little to no intrinsic value and is authorized by the central bank or governmental body. C) value, because it can be redeemed for gold by the central bank. D) little to no intrinsic value but is backed by the quantity of gold held by the central bank.
When a shortage occurs in the market for a good, quantity
A. demanded exceeds quantity supplied and the market mechanism pushes the price up, which in turn encourages more production and less consumption. B. supplied exceeds quantity demanded and the price falls, which encourages more production and less consumption. C. demanded exceeds quantity supplied and the market mechanism pushes the price down, which encourages more production and less consumption. D. supplied exceeds quantity demanded and the price rises, which encourages more production and less consumption.
If companies who took into account an externality want to supply more at any given price compared to the original supply, they must have addressed a:
A. positive externality. B. negative externality. C. network externality. D. social externality.
All Americans take advantage of public goods and merit goods to the same degree
Indicate whether the statement is true or false