In an open economy, private saving, , is equal to

A) I - CA + (G - T).
B) I + CA - (G - T).
C) I + CA + (G - T).
D) I - CA - (G - T).
E) I + CA + (G + T).

C

Economics

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The market clearing price of corn has just increased. Which of the following could have caused this change?

A) a reduction in demand B) a reduction in supply C) an increase in quantity demanded D) an increase in quantity supplied

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Suppose that changes in aggregate demand tended to be infrequent and that it takes a long time for the economy to return to long-run output. How would this affect the arguments of those who oppose using policy to stabilize output?

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