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Suppose that the economy is characterized by the following behavioral equations: C= 170 + 0.7YD I= 170 G= 150 T= 100
a. What does equilibrium output equal? Y=?
b. What does total demand equal? Z=?
c. Total demand is (greater than/equal to/ less than) production
Explain why a perfectly competitive firm does not expand its sales without limit if its horizontal demand curve indicates that it can sell as much as desires at the current market
Whenever real GDP declines, nominal GDP must also decline
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How can an economy achieve mutual gain from International Trade?
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Roles of government in controlling market forces under neoclassical view
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