In an Economic Model

question 13

Multiple Choice

In an economic model

• A)endogenous variables determine exogenous variables.
• B)exogenous variables determine endogenous variables.
• C)the government budget constraint determines exogenous variables.
• D)endogenous and exogenous variables are determined simultaneously.
• E)fiscal policy determines endogenous variables.

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Definitions:

Domestic Quantity Supplied

The total amount of a good or service that producers in a country are willing and able to sell at a certain price.

Domestic Quantity Demanded

The total amount of a good or service that is demanded by consumers within a specific country.

Hypothetical Nations

Imaginary or theoretical countries used for the purpose of discussion, analysis, or illustration in academic exercises.

Tariff

A tax imposed by a nation on an imported good.