The equilibrium price for a British pound is $1.60. At a price of $1.75 per British pound, there would be excess __________ the dollar and the dollar would __________

Refer to the figure above. If A forms a customs union with C, the post agreement price will be

A) $10 B) $15 C) $20 D) $25

Suppose output is $440 billion, government purchases are $40 billion, desired consumption is $320 billion, and net exports are $35 billion. Absorption is equal to

A) $405 billion. B) $420 billion. C) $435 billion. D) $440 billion.