ECON 4001.02 Lecture 21: Iso-expenditure Line

In a mixed open economy, the equilibrium GDP exists where

 

A. Ca + Ig + Xn intersects the 45-degree line.

B. Ca + Ig = Sa + T + X.

C. Ca + Ig + Xn + G = GDP.

D. Ca + Ig + Xn = Sa + T.

Which of the following is not included in U.S. GDP?

a. Honda Motor Company in Atlanta, Georgia.

b. Dell computers in India.

c. A Mexican immigrant working in Los Angeles, CA.

d. Dell computers in San Francisco, CA.

In which of the following situations for a mixed open economy will the level of GDP expand?

A. when Ig + X + G exceeds Sa + M + T
B. when Sa + T + M exceeds Ig + G + X
C. when GDP exceeds Ca + Ig + G + Xn
D. when Ig + M + T exceeds Ca + X + S