In a mixed open economy,which of the following all affect the equilibrium GDP in the same direction? A) C_a,I_g,S_a,and M. B) S_a,T,and M. C) I_g,T,and C_a. D) S_a,I_g,and X.

Question

Quizplus · Accepted Answer

In a mixed open economy, the following factors affect the equilibrium GDP in the same direction: - Any change in autonomous spending (CS or T) - Any change in net exports (X-M) Therefore, out of the given options, only B includes both factors that affect equilibrium GDP in the same direction: S_a (autonomous spending), T (taxes), and M (net exports).

In a Mixed Open Economy,which of the Following All Affect