Refer to the figure and assume the economy initially is in equilibrium at point a. In the new classical theory, an unanticipated decrease in aggregate demand from AD 2 to AD 3 would move the economy:
A. directly from a to h.
B. from a to g to h.
C. directly from a to d.
D. from a to c to h.
D. from a to c to h.
Economics
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Which of the following is the gravity equation calculation?
a. the inverse of the average GDPs times transportation costs b. the sum of GDPs times total exports c. the product of the GDPs in two nations divided by a measure of the distance between them times a constant, reflecting other factors affecting trade d. the product of the land mass of the two nations divided by the average of their GDPs times a constant factor, reflecting other factors affecting trade
Economics
Which of the following is NOT included in the income approach to measuring GDP?
A) net interest B) net exports C) corporate profits D) compensation of employees
Economics