Suppose that in a closed economy GDP is $11 trillion, consumption is $7 trillion, taxes are $2 trillion and the government runs a deficit of $1 trillion. What are private saving and national saving? ()
A. $4 trillion and $1 trillion
B. $4 trillion and -$1 trillion
C. $2 trillion and $1 trillion
D. $2 trillion and -$1 trillion
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National income or output is determined by ( ).
A. Capital
B. Labor
C. Technology
D. All of the above
In a competitive market, real wage in equilibrium equals ( )
A. Real rental price
B. Marginal product of capital
C. Marginal product of labor
D. Average product of labor
In a model when technology A, capital K, labor L, government purchase G, and tax T are given, we know ( )
A. National output is constant
B. National saving is constant
C. Public saving is constant
D. All of the above
In our model of closed economy in the textbook, real interest rate r is important, because ( )
A. Saving must change when r changes
B. Investment changes when r changes
C. Output changes when r changes
D. All of the above