Refer to the information. In equilibrium, the level of consumption will be:





Answer the question on the basis of the following information for a private closed economy. where S is saving, I g is gross investment, i is the real interest rate, and Y is GDP.



A.  $80.

B.  $95.

C.  $65.

D.  $70.

C.  $65.

Economics

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If real GDP is less than potential GDP, then the ________ and the price level ________

A) aggregate demand curve shifts leftward; rises B) aggregate demand curve shifts rightward; falls C) aggregate supply curve shifts leftward; rises D) aggregate supply curve shifts rightward; falls E) amount of potential GDP increases; falls

Economics

The amount of income a consumer has to spend on goods and services is known as

A) wealth. B) a budget constraint. C) purchasing power. D) effective demand.

Economics