Refer to the above table. If planned investments were fixed at $16, taxes were zero, government purchases of goods and services were zero, and net exports were zero, then equilibrium real GDP would be $630 initially. If government purchases were then raised from $0 to $10, and lump-sum taxes also increased from $0 to $10, other things constant, then the equilibrium real GDP would become:
The table shows the consumption schedule for a hypothetical economy. All figures are in billions of dollars.
A. $660
B. $630
C. $640
D. $650
C. $640
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Figure 8-3
Figure 8-3 shows a firm’s total profit function. At an output of 40, the firm’s total profit equals ____.
A. 10 B. 40 C. 200 D. 400
One effect of having access to cheap foreign goods can be to raise workers' real wages
a. True b. False Indicate whether the statement is true or false
Why is a construction worker never likely to earn as much as a famous athlete?
a. Compensating differentials create a higher wage for professional athletes. b. Technological progress has advanced less in the construction industry then in sports training. c. Productivity levels are low in the construction industry due to the high number of people willing to be construction workers. d. A construction worker can provide his services to only a limited number of customers.
If national saving in a closed economy is greater than zero, which of the following must be true?
a. Either public saving or private saving must be greater than zero. b. Investment is positive. c. d. All of the above are correct.