In Figure 9.8, if full-employment income is produced at $400 billion, which of the following can alleviate a recession?
A. An increase in interest rates.
B. An increase in taxes.
C. An increase in government spending.
D. An increase in saving.
Answer: C
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After a tariff is imposed, consumers must pay a price equal to the
A) world market price. B) domestic equilibrium price when there is no trade. C) world market price plus the tariff. D) world market price less the tariff. E) domestic equilibrium price when there is no trade plus the tariff.
Gross domestic product is calculated by summing up
A) the total market value of goods and services in the economy. B) the total quantity of goods and services produced in the economy during a period of time. C) the total quantity of goods and services in the economy. D) the total market value of final goods and services produced in the economy during a period of time.