Ans: True
Explanation:
From the table, it is seen that GDP = TE = $1,720. This is called equilibrium GDP. Thus, the statement is true.
Ans:
GDP($) | Taxes($) | DI($) | C($) | I($) | G($) | X-IM ($) | TE($) |
1360 | 520 | 840 | 630 | 200 | 620 | 30 | 1480 |
1480 | 520 | 960 | 720 | 200 | 620 | 30 | 1570 |
1600 | 520 | 1080 | 810 | 200 | 620 | 30 | 1660 |
1720 | 520 | 1200 | 900 | 200 | 620 | 30 | 1750 |
1840 | 520 | 1320 | 990 | 200 | 620 | 30 | 1840 |
Ans: False
Explanation:
The equilibrium occurs at GDP equals to $1,840. Thus, the statement is false.
Suppose you are put in charge of fiscal policy for the economy in which tax collections...
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