Given the information in Scenario 4.3, determine I
A) 0
B) 14
C) 24
D) 36
E) 48
B
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Recall the Application. Recessions can occur either when there is a(n) ________ in aggregate demand or a(n) ________ in aggregate supply
A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease
Which of the following is NOT part of the expenditure approach to measuring GDP?
A) gross private domestic investment B) net exports of goods and services C) net interest D) personal consumption expenditures
In an economy in which velocity is constant and real output grows at an average rate of 4 percent per year, a 4 percent average rate of growth in the money supply would result in: a. a constant price level
b. a slowly increasing price level. c. a rapidly increasing price level. d. constant real GDP. e. constant nominal GDP.
If the government repeals an investment tax credit and increases income taxes,
a. real GDP rises, and the price level could rise, fall, or stay the same. b. real GDP falls, and the price level could rise, fall, or stay the same. c. real GDP and the price level rise. d. real GDP and the price level fall.