Other Things Equal, If $100 Billion of Government Purchases (G)

question 45

Multiple Choice

Other things equal, if $100 billion of government purchases (G) is added to private spending (C + Ig + Xn) , GDP will

• A) increase by $100 billion.
• B) increase by less than $100 billion.
• C) increase by more than $100 billion.
• D) fall by $100 billion.

Identify and record the correct entries for sales transactions inclusive of sales tax.

Understand the concept of scarcity and its implications for the allocation of resources in an economy.

Explain the importance and role of capital and labor as resources in economic production.

Comprehend the concept of opportunity cost and its relevance in economic decision-making.

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Definitions:

Defined Contribution Plan

A retirement plan where the employer, employee, or both make contributions on a regular basis, with final benefits dependent on investment performance.

Interest Cost

The total expense for borrowing money, typically expressed as an annual percentage of the loan amount.

Actuarially Assumed

Actuarially assumed involves estimations or calculations made based on actuarial methods, often related to insurance or pensions, to predict future obligations or costs.

Defined Contribution Pension Plan

A retirement plan where an employer, employee or both make contributions, with future benefits dependent on investment performance.