Suppose That a Mixed Open Economy Is Producing at Its

question 133

Multiple Choice

Suppose that a mixed open economy is producing at its equilibrium income and that net exports are zero.If at the equilibrium income the public sector's budget shows a surplus,

• A)Ca + I g + Xn + G must exceed GDP.
• B)planned investment must exceed saving.
• C)a recessionary expenditure gap must exist.
• D)saving must exceed planned investment.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or a business cycle, whichever is longer.

Purchasing Control

The process of managing and regulating the buying of goods and services for an organization, to ensure that products are purchased cost-effectively and meet the required standards.

Supplier-Purchaser Relationships

The dynamic between businesses that provide products or services and their customers or clients, focusing on transactional exchanges, trust, and long-term partnerships.

Leveraging Buying Power

Utilizing an organization's or individual's ability to negotiate better terms through the strategic use of their purchasing capacity.