Consider a Simple Macro Model with a Constant Price Level

question 78

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 60 + 0.43Y,I = 150,G = 260,T = 0,X = 90,IM = 0.06Y.The trade balance at equilibrium national income is

• A)a deficit of 36.67.
• B)a deficit of 21.43.
• C)zero.
• D)a surplus of 21.43.
• E)a surplus of 36.67.

---

Definitions:

Fund Balance

The net assets of a governmental fund calculated as the difference between its assets and liabilities, representing the cumulative results of operations.

Statement of Revenues

A financial document outlining the sources and amounts of a company's or government's income over a specific period.

General Fund

The primary operating fund of a governmental entity, accounting for all financial resources except those required to be accounted for in another fund.

Governmental Fund Financial Statements

Financial reports that detail the financial position and results of operations for the government funds, embracing a diverse range of governmental activities and services.