If Saving+Tax+Import > Investment+Government Spending+Export, Then _____ Must Fall to Establish

question 127

Multiple Choice

If Saving+Tax+Import > Investment+Government spending+Export, then _____ must fall to establish macroeconomic equilibrium.

• A)net exports
• B)gross exports
• C)nominal GDP
• D)real GDP
• E)government spending

---

Definitions:

Average Total Cost

The overall expense of manufacturing, when dispersed across the number of products made, encompassing both constant and fluctuating expenses.

Average Variable Cost

The sum of all costs that fluctuate with production volume, divided by the total amount of goods produced.

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to changes.

Variable Factors

Inputs to production that can be adjusted in the short term, such as labor and raw materials.