If consumption expenditures are $200 billion, total investment is $50 billion, government purchases are $40 billion, exports are $45 billion, imports are $40 billion, aggregate expenditures must be:
A. $275 billion.
B. $295 billion.
C. $320 billion.
D. $395 billion.
Answer: B
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A) raise; increase B) raise; decrease C) lower; increase D) lower; decrease
Which of the following statements is CORRECT?
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Matt's real wage in 2014 is $26.80. If the price level is 104, what is Matt's nominal wage?
A) $30.80 B) $27.87 C) $26.80 D) $25.77