The country of Meditor, a small country with a closed economy, uses the merit as its currency. Recent national income statistics showed that it had GDP of $600 million merits, no government transfer payments, taxes of $150 million merits, a budget surplus of $40 billion merits, and investment of $100 billion merits. What were its consumption and government expenditures on goods and services?
a. $460 million merits and $150 million merits
b. $310 million merits and $190 million merits
c. $350 million merits and $190 million merits
d. $390 million merits and $110 million merits
d
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A current account surplus indicates that America is ________ its claims on foreign wealth, while a deficit indicates that this country is ________ its claims on foreign wealth
A) reducing; reducing B) reducing; increasing C) increasing; reducing D) increasing; increasing
Which of the following increases the political power of special interest groups and makes counterproductive government action more likely?
a. logrolling and pork barrel legislation b. the rational-ignorance effect c. public goods d. both a and b, but not c
The largest component of aggregate demand is
A. investment spending. B. consumer spending. C. government spending. D. total imports.
Which of the following equations is correct?
A) AVC - ATC = AFC B) AVC + ATC = AFC C) AFC + AVC = ATC D) ATC + AVC = AFC