Use the following table showing the consumption schedule for an economy to answer the next question. All figures are in billions of dollars.RGDPConsumption$440$450490490540530590570640610Given a level of investment and government expenditures totaling $30 billion, zero net exports, and a lump-sum tax of $30 billion, a reduction of government expenditures of $20 billion at each level of real GDP will result in an equilibrium real GDP of
A. $490 billion.
B. $590 billion.
C. $640 billion.
D. $540 billion.
Answer: D
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For endangered species, the federal government
A) can only protect the animal on federal property because of common property issues. B) has the right to regulate activities on private land to save the species from extinction. C) turns over the protection of an endangered species to the state authorities where the species lives. D) will capture a pair of animals so that the species does not become extinct.
The Social Security tax, and to a large extent, the federal income tax, are labor taxes
a. True b. False Indicate whether the statement is true or false
In a simple, private economy, suppose that the MPC is 0.8 and investment rises by $20 million. At the new equilibrium, how much will saving have increased?
A. $8 million B. $16 million C. $20 million D. $80 million E. $100 million
If the rate of interest did not equate saving and investment and total output was greater than total spending, the classical economist argued, competition would tend to force
A. product and resource prices down. B. product prices up and resource prices down. C. product prices up and resource prices up. D. product prices down and resource prices up.