In a small economy in 2016, aggregate expenditure was $850 million while GDP that year was $800 million. Which of the following can explain the difference between aggregate expenditure and GDP that year?
A) Aggregate expenditure is always less than GDP in developing countries.
B) Aggregate expenditure is always less than GDP in developed countries.
C) Firm investment in inventories was less than anticipated in 2016.
D) Firm investment in inventories was greater than anticipated in 2016.
C
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Why should the development of a solid elementary education system take precedence over an expansion of the university system in developing countries?
What will be an ideal response?
If nominal GDP for 2009 is $6400 billion and real GDP for 2010 is $6720 billion (in 2009 dollars), then the growth rate of real GDP is
A) 0%. B) 0.5%. C) 5%. D) 50%.
The federal funds rate is the interest rate:
A. the FDIC charges banks that need to borrow from it to meet depositor demands. B. banks charge each other for overnight loans on excess reserves held at the Fed. C. the Fed charges banks who borrow from it. D. the U.S. Treasury charges banks that need emergency funds.
Table 10.2Table 10.2 contains price, demand, and cost data for the Capri Theater, the only first-run movie theater in a small town. What is its profit from students under the student discount policy?
A. $200 B. $250 C. $325 D. $375