Consider a closed economy without the government. If the GDP of the economy is $25,000 and the savings rate in the economy is 25%, the aggregate savings in the economy is:
A) $8,000. B) $8,650. C) $6,250. D) $3,320.
C
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Production points inside the production possibilities frontier
A) are unattainable. B) are attainable only with the full utilization of all resources. C) are associated with unused or misallocated resources. D) result in more rapid growth.
The shape of the long-run Phillips curve suggests that over a long time horizon there is a magnified trade-off between the unemployment rate and inflation
a. True b. False Indicate whether the statement is true or false
The primary cause of inflation is
a. large budget deficits. b. high taxes. c. rapid expansion of the money supply. d. government expenditures that are large relative to the size of the economy.
A concentration ratio gives
A. the sales of the four largest firms in the industry divided by the sales of the eight largest firms in the industry. B. the percentage of all sales contributed by the four or eight largest firms in the industry. C. the total sales of four or eight of the mid-sized firms in the industry. D. the average size of the firms in an industry.