In the above figure, what is the equilibrium level of real GDP with government and the foreign sector?
A) $4.0 trillion B) $2.5 trillion C) $3.0 trillion D) $2.0 trillion
A
You might also like to view...
Neoclassical growth theory predicts that
A) population growth rates slow as employment opportunities for women increase. B) population explosions decrease real GDP per person. C) economic growth leads to technological change. D) the pursuit of profit creates perpetual growth.
An advantage to American banks from operating foreign branches is that Eurodollar deposits in offshore branches are
A) not subject to reserve requirements. B) insured by the FDIC. C) subject to extensive regulatory supervision. D) all demand deposits that pay no interest.
Answer the following statement true (T) or false (F)
1) The major expenditure of local governments is for education. 2) A tax is progressive if the average tax rate rises as income increases. 3) If you pay a $2,000 tax on $10,000 of taxable income and a $4,000 tax on a taxable income of $16,000, the tax is progressive. 4) The marginal tax rate is the tax rate that applies to additional income.
Which one of the following describes the current state of economic development in the United States?
A. Employment is declining in the manufacturing sector and growing in the service sector. B. Employment is declining in the manufacturing sector and growing in the agricultural sector. C. The lack of well-defined property rights in the United States means that entrepreneurs do not expect to capture the benefits of innovations they bring to the marketplace. D. The United States is running out of natural resources, and therefore it will soon experience a drop in the rate of economic growth.