When saving is less than planned investment in the aggregate expenditures model of a private closed economy then:
A. Real GDP will decrease
B. The rate of interest will decline
C. There will be a decline in the price level
D. There will be a rise in real GDP
D. There will be a rise in real GDP
You might also like to view...
If quantity of tea is measured on the horizontal axis and quantity of coffee is measured on the vertical axis, an increase in the price of coffee will cause the budget constraint to:
A) pivot leftward along the vertical axis. B) pivot rightward along the vertical axis. C) pivot leftward along the horizontal axis. D) pivot rightward along the horizontal axis.
"Trade is generally harmful if there are large disparities between countries in wages."
A) This is generally true. B) This is generally false. C) Trade theory has nothing to say about this issue. D) This is true if the trade partner ignores child labor laws. E) This is true if the trade partner uses prison labor.
A government policy that keeps the price of gasoline below its equilibrium level will increase consumer surplus.
Answer the following statement true (T) or false (F)
A country operates inside its production possibilities curve; this may be caused by
A. a lack of modern products being produced. B. total efficiency in industry. C. a new resource being discovered. D. unemployed resources.