On a Lorenz curve graph, the area between the line of equality and the Lorenz curve is 2,000, and the entire area beneath the line of equality is 5,000. What does the Gini ratio equal?
What will be an ideal response?
The Gini ratio is the ratio of the area between the line of equality and the Lorenz curve to the entire area beneath the line of equality. So the Gini ratio is 2,000/5,0000 = 0.4.
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Refer to the data. Equilibrium Y (= GDP) is:
Answer the question on the basis of the following data for a private
closed economy. The letters Y, C, S, and I are used to represent real GDP, consumption, saving, and investment respectively.
A. $100.
B. $200.
C. $300.
D. $400.
Exhibit 20-4 Aggregate demand and supply model
?
In Exhibit 20-4, which one of the following actions could the Fed use to shift the AD curve from AD1 to AD2?
A. raise the legal reserve requirement B. lower the discount rate C. increase the federal funds rate D. sell government securities