Assuming there is no foreign trade in the economy, the economy is in equilibrium when
A. G + T = S + I.
B. I + G = S + T.
C. S + T = C + I.
D. IT = S + G.
Answer: B
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Stock in Frozen Dreams, an ice cream manufacturer, has a price to earnings ratio of 24 . Is this comparatively high or low? What are two explanations for the size of this company's price to earnings ratio?
Business cycles all display the following characteristics except
A. rising prices during an expansion and falling prices during the contraction. B. a period of expansion followed by one of contraction. C. comovement of many economic variables. D. they last a period of one to twelve years.
Suppose the CPI in 1983 is 100 and the CPI this year is 172. These values for the CPI mean that
A) inflation between the two years was 172 percent. B) typically, a good whose price was $100 in 1983 had a price of $172 this year. C) typically, a good whose price was $172 in 1983 had a price of $100 this year. D) typically, a good whose price was $100 in 1983 had a price of $139 this year. E) typically, a good whose price was $100 in 1983 had a price of $58 this year.
If the MPC is 0.9, then an increase in taxes of $100 can be expected to __________ consumption by the amount of __________
A) increase; $90 B) decrease; $90 C) increase; $100 D) decrease; $100