Refer to the information. If government desired to raise the equilibrium GDP to $650, it could:
Answer the question on the basis of the following information for a mixed
open economy. The letters Y, C a , I g , X n , G, and T stand for GDP, consumption, gross
investment, net exports, government purchases, and net taxes respectively. Figures are in
billions of dollars.
A. raise G by $45 and reduce T by $10.
B. raise G by $40 and reduce T by $30.
C. raise G by $30 or reduce T by $40.
D. raise both G and T by $40.
C. raise G by $30 or reduce T by $40.
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In the second quarter (three-month period) of 2001, U.S. nominal GDP increased but U.S. real GDP declined. We can conclude that:
A. nominal income declined by more than personal income. B. the price level rose by more than nominal GDP. C. real wages declined by more than real GDP. D. the price level fell by more than real GDP.
Costs that are incurred by a business are called ________. Examples include salaries, equipment, travel, rent, and insurance.
a. profit b. expenses c. revenue d. outflow e. debt