Gross domestic product (GDP) can be calculated using either the expenditure method or the income method.
Answer the following statement true (T) or false (F)
True
This reflects the national income accounting identity: production equals income.
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In a certain economy, the components of aggregate spending are given by: C = 100 + 0.9(Y - T) - 500rI = 150 - 1,000rG = 200NX = 50T = 100 Given the information about the economy above, what would be the impact on short-run equilibrium output of a one-percentage-point decrease in the real interest rate from 6 percent to 5 percent?
A. Short-run equilibrium output would decrease by 150 units. B. Short-run equilibrium output would increase by 150 units. C. Short-run equilibrium output would decrease by 1,500 units. D. Short-run equilibrium output would increase by 15 units.
List the factors that influence supply. How does a change in each of the factors you have listed affect the supply curve?
What will be an ideal response?
A ______ economy is an economy where government and the private sector together determine the allocation of resources.
a. traditional b. command c. mixed d. market
Economic efficiency in a free market occurs when
A) consumer surplus is maximized. B) producer surplus is maximized. C) the sum of consumer surplus and producer surplus is maximized. D) price is as low as possible.