In the IS-LM model, when government spending and taxes increase by the same amount
a. income and interest rates remain unchanged.
b. interest rates and income rise.
c. interest rates and income fall.
d. changes in interest rates are indeterminate but income rises.
e. none of the above.
B
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At the beginning of the year, Becky's wealth was $30,000. During the year, she earned $50,000 of income, paid $6,000 in taxes and consumed $43,000 of goods and services. What is Becky's wealth at the end of the year?
What will be an ideal response?
Acme is a perfectly competitive firm. It has the cost schedules given in the above table and has a fixed cost of $12.00. The price of Acme's product is $4.00
What is Acme's most profitable amount of output? What is Acme's total economic profit or loss?
A recession can manifest itself with ________
A) a decrease in consumer spending B) a decrease in industrial production C) a lengthy period of falling GDP D) all of the above E) none of the above
Gulmirah, a small underdeveloped country, has an adult population of 16.8 million, and the remaining 13.75 million of the population is below 18 years of age. The approximate output per capita of this country is $644.80 . The GDP of Gulmirah is equal to approximately _____
a. $8.87 billion b. $10.08 billion c. $20.30 billion d. $13.22 billion e. $19.70 billion