When aggregate planned expenditure ________ real GDP, there are unplanned ________ in inventories, and firms ________ production, therefore decreasing real GDP
A) exceeds; decreases; decrease
B) exceeds; increases; increase
C) is less than; increases; decrease
D) is less than; increases; increase
E) is less than; decreases; decrease
C
Economics
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If the world price for a good is above a nation's pre-trade equilibrium price, then the nation
A) will export the good. B) will import the good. C) will neither export nor import the good. D) cannot gain from trade. E) Both C and D.
Economics
Suppose the economy is at a full-employment GDP of $1 trillion and the tax revenue received by the federal government is always one-fifth of GDP. If planned government expenditure is $300 billion, the structural
A. Deficit is zero. B. Deficit is $100 billion. C. Deficit is $500 billion. D. Surplus is $100 billion.
Economics