Suppose That the Economy Is in Equilibrium with a Trade

question 128

Multiple Choice

Suppose that the economy is in equilibrium with a trade surplus and with saving less than investment.According to the circular flow model,the government's budget

• A)must be in deficit
• B)must be in surplus
• C)must be balanced
• D)could be in a surplus or a deficit
• E)could be in balance or a surplus

---

Definitions:

Natural Theology

The study of nature and the physical universe as a means of understanding the existence and attributes of a divine creator.

William Paley

An English clergyman and philosopher known for formulating the watchmaker analogy, arguing for the existence of God based on the complexity of nature.

Influential Text

A written work that has significant impact on the thinking or behavior of individuals or society as a whole.

Genetic Drift

A mechanism of evolution that refers to random changes in the frequency of alleles within a population over time.