An economy with no government and no foreign trade tends to move toward equilibrium GDP because at output levels greater than equilibrium GDP, inventories are
A. Increasing, and actual investment is less than desired investment.
B. Decreasing, and actual investment is less than desired investment.
C. Increasing, and actual investment exceeds desired investment.
D. Decreasing, and actual investment exceeds desired investment.
Answer: C
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An example of a perfectly competitive industry is
A) a big city police department. B) the market for corn in the United States. C) the market for French impressionists' paintings. D) the National Football League.
Suppose that in 2016, the national income in the United States was $200 billion, depreciation was $15 billion, personal taxes were $20 billion, and transfer payments were $10 billion. Gross domestic product in 2016 is
A) $185 billion. B) $215 billion. C) $220 billion. D) $245 billion.