You Have Some Estimates of National Accounts Numbers for a Closed

question 188

Multiple Choice

You have some estimates of national accounts numbers for a closed economy for the coming year.Under one set of expectations,government expenditures will be $30 billion,transfer payments will be $10 billion,and taxes will be $45 billion.Under another set of expectations,GDP will be $200 billion,taxes will be $50 billion,transfer payments will be $20 billion,consumption will be $120 million,and investment will be $40 billion.Based on these numbers in the first case there should be a

• A)$15 billion surplus, and in the second case a $10 billion surplus.
• B)$15 billion surplus, and in the second case a $10 billion deficit.
• C)$5 billion surplus, and in the second case a $10 billion surplus.
• D)$5 billion surplus, and in the second case a $10 billion deficit.

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Definitions:

Lively

Lively describes someone or something full of energy and enthusiasm, often associated with a vibrant or animated nature.

Longitudinal Comparison

Comparative analysis of data or variables collected over time to evaluate changes and trends.

Creative

The ability to think of new and original ideas; characterized by innovation and imagination.

Tend-And-Befriend Response

A behavioral response to stress that involves seeking social support and nurturing others, as opposed to fight-or-flight reactions.