-Using the Data in the Above Table, If Exports =

question 530

Multiple Choice

-Using the data in the above table, if exports = $1,150 billion and the private sector runs a surplus of
$300 billion, the government sector will run

• A) a deficit of $450 billion.
• B) a surplus of $450 billion.
• C) a deficit of $150 billion.
• D) a surplus of $150 billion.

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Definitions:

Budget Set

The collection of all possible bundles of goods and services that a consumer can afford with their income at given prices.

Prices Doubled

A situation where the cost of goods, services, or commodities increases to twice their original amount.

Relative Prices

The price of one good or service compared to another, usually considered in terms of opportunity cost.

Price Of X

The amount of money required to purchase a unit of product X in a market.