In a private closed economy (an economy with only a private sector and no international trade), the equilibrium condition for the economy is
A. C + Ig + G + NX = Y.
B. AE = C + Ig + G = Y.
C. AE = G + Ig = Y.
D. AE = C + Ig = Y.
Answer: D
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In market economies, income distribution is always going to be completely equitable
Indicate whether the statement is true or false
If demand is unit elastic, a price reduction will
a. increase revenues b. reduce revenues c. reduce quantity demanded d. have no effect on revenues e. increase profits
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What will be an ideal response?