In a mixed open economy, the equilibrium GDP is determined at that point where:
A. S a + M + T = I g + X + G.
B. the 45-degree line and the saving schedule intersect.
C. S a + X + G = I g + T.
D. S a + I g + X = G + T.
A. S a + M + T = I g + X + G.
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When the price of a pizza is $10, the quantity of soda demanded is 300 drinks. When the price of a pizza is $15, the quantity soda demanded is 100 drinks. The cross elasticity of demand is equal to
A) -0.25. B) -0.40. C) -2.50. D) -25.00. E) 4.00.
A manager invests $400,00 . in a technology to reduce overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . Ceteris peribus, if the firm continues its production in the same economic environment, the firms accounting profits should
a. increase b. decrease c. stay the same d. does not affect profits