You are given the following information about aggregate demand at the existing price level for an economy: (1) consumption = $400 billion; (2) investment = $40 billion; (3) government purchases = $90 billion; and (4) net export = $25 billion. If the full-employment level of GDP for this economy is $600 billion, then what combination of actions would be most consistent with closing the GDP-gap here?
A. Increase government spending and taxes
B. Decrease government spending and taxes
C. Decrease government spending and increase taxes
D. Increase government spending and decrease taxes
D. Increase government spending and decrease taxes
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What is special about healthcare that makes it a good provided by the government?
What will be an ideal response?
A government budget surplus
A) decreases a country's ability to finance domestic and foreign investment. B) increases a country's ability to finance domestic and foreign investment. C) increases a country's ability to finance domestic investment and decreases its ability to finance foreign investment. D) decreases a country's ability to finance domestic investment and increases its ability to finance foreign investment.
The economic systems of the former Soviet Union, the People's Republic of China, and Cuba are best classified as:
a. traditional economies. b. command economies. c. market economies. d. decentralized economies.
As discussed in the text, a bank can extend new loans equal to the amount by which its excess reserves increase
a. True b. False Indicate whether the statement is true or false