Use the following table showing the consumption schedule for a hypothetical economy to answer the next question.All figures are in billions of dollars.RGDPConsumption$600$590610598620606630614640622650630660638If gross investments were fixed at $16, taxes were zero, government purchases of goods and services were zero, and net exports were zero, then equilibrium real GDP would be $630 initially. If government purchases were then raised from $0 to $4, other things constant, then the equilibrium real GDP would become
A. $630.
B. $660.
C. $640.
D. $650.
Answer: D
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A) decreases; decreases B) increases; increases C) decreases; increases D) increases; decreases E) increases; does not change because people need money
In the United States, the percentage of households that have incomes below the mean income is
A) 50 percent. B) less than 50 percent. C) more than 50 percent. D) 0 percent.
Which of the following is most likely a topic of discussion in macroeconomics?
a. an increase in the price of a pizza b. a decrease in the production of DVD players by a consumer electronics company c. an increase in the wage rate paid to automobile workers d. a decrease in the unemployment rate
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a. True b. False Indicate whether the statement is true or false