Use the following to answer questions:
Scenario: Closed Economy S = I
GDP is $12 trillion this year in a closed economy. Consumption is $8 trillion and government spending is $2 trillion. Taxes are $0.5 trillion.
-(Scenario: Closed Economy S = I) Look at the scenario Closed Economy S = I. What is the government budget balance?
A) a surplus of $1.5 trillion
B) a deficit of $1.5 trillion
C) a surplus of $0.5 trillion
D) a deficit of $0.5 trillion
Correct Answer:
Verified
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Q14: Which of the following is (are) source(s)
Q16: Most physical capital, except for infrastructure, is
Q17: Which of the following do economists view
Q19: The budget balance equals:
A) taxes plus government
Q20: Physical capital is purchased through investment spending,
Q22: Use the following to answer questions :
Scenario:
Q23: National savings in a closed economy is
Q24: In a closed economy, all investment spending
Q30: National savings is the sum of private
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