Suppose That a Mixed Open Economy Is Producing at Its

question 32

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) C_a + I_g + X_n + 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:

Cognitive Technique

A method used in psychological therapy that involves identifying and changing negative thought patterns to improve emotional well-being and behavior.

Severe Physical Injuries

Significant bodily harm or damage that requires immediate medical attention and may lead to long-term health issues or disabilities.

Daily Substance Abuse

The repetitive and harmful use of substances such as drugs or alcohol on a daily basis.

Compromised Coping

Compromised coping is a state wherein an individual's usual coping mechanisms are overwhelmed or ineffective, leading to difficulty in managing stress or emotional distress.