Consumption spending is $5 million, planned investment spending is $8 million, actual investment spending is $8 million, government purchases are $10 million, and net export spending is $2 million
Based on this information, which of the following is true?
A) Aggregate expenditure is greater than GDP. B) Aggregate expenditure is equal to GDP.
C) There was an unplanned change in inventories. D) Aggregate expenditure is less than GDP.
B
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An option premium is
A) paid by the short to the long as soon as the option is purchased. B) paid by the long to the short as soon as the option is purchased. C) paid by the long to the short when the option is exercised. D) paid by the short to the long when the option is exercised.
The idea that individuals can reach an efficient equilibrium through private trades, even in the presence of an externality, is called:
A. market failure. B. trade quotas. C. the Coase theorem. D. the invisible hand.
If U.S. GDP drops and South Korean GDP remains unchanged, which of the following will happen in the Korean won market?
a. A rightward shift of the supply curve, a depreciation of the won, and a larger number of won traded b. A rightward shift of the demand curve, a depreciation of the won, and a smaller number of won traded c. A rightward shift of the demand curve, an appreciation of the won, and a larger number of won traded d. A leftward shift of the demand curve, a depreciation of the won, and a smaller number of won traded e. A leftward shift of the supply curve, an appreciation of the won, and a smaller number of won traded.
Statistical studies in the United States have reached the conclusion that for low-income workers
a. the substitution effect is greater than the income effect. b. the income effect is greater than the substitution effect. c. the income effect is about equal to the substitution effect. d. the substitution effect is of the "wrong" sign.