The critical issue of macro instability, when there is no government intervention and no foreign trade, is whether
A. Investment and consumption will exceed disposable income.
B. Savings and taxes will be equal.
C. spending injections will equal spending leakage at full employment.
D. Consumption and savings lead to the ideal interest rate.
Answer: C
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Suppose that the share of population employed in Country C is 50 percent, and that Countries C and D have the same real GDP per capita. Based on the information in the table, what share of Country D's population must be employed? CountryPopulation (millions)Average Labor Productivity ($)A1002,000B15010,000C7525,000D25050,000E9560,000
A. 100.0 percent B. 75.0 percent C. 12.5 percent D. 25.0 percent
If the market price rises from P0 to P2 in the above figure, then there is a
A. surplus equal to the distance Q0, Q2. B. shortage equal to the distance Q0, Q2. C. shortage equal to the distance Q1, Q2. D. surplus equal to the distance Q1, Q2.