Assume there is no foreign trade, the government sector has a balanced budget, and the economy is in equilibrium. If actual investment is greater than desired investment, then it is most likely that
A. Investment plus government spending is greater than saving plus taxes.
B. Saving plus taxes is greater than investment plus government spending.
C. Investment plus taxes is greater than saving plus government spending.
D. Saving plus government spending is greater than investment plus taxes.
Answer: B
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A diagram of a productivity curve has
A) real GDP per hour of labor on the y-axis and hours of labor on the x-axis. B) capital per hour of labor on the y-axis and real GDP per hour of labor on the x-axis. C) real wages per hour on the y-axis and real GDP per hour of labor on the x-axis. D) real GDP per hour of labor on the y-axis and real wages per hour on the x-axis. E) real GDP per hour of labor on the y-axis and capital per hour of labor on the x-axis.
The price elasticity of demand for pleasure travel (-1.9 ) and business travel (-0.8 ) suggests that air travel for pleasure is a luxury and air travel for business is a necessity
Indicate whether the statement is true or false