"Equilibrium" is a situation in which there are no inherent forces to produce change
a. True
b. False
Indicate whether the statement is true or false
True
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Aggregate demand and aggregate supply must be combined to determine the price level and the "real" GDP
Indicate whether the statement is true or false
When the change in unplanned inventories is positive, then
A) planned inventories will increase in order to return to equilibrium. B) real GDP is less than aggregate planned expenditure. C) real GDP equals aggregate planned expenditure. D) real GDP is larger than aggregate planned expenditure. E) economic growth will occur as the economy returns to equilibrium.
Imports are a leakage in the sense that
a. the international financial system is unstable. b. consumers buy foreign output of goods and services. c. foreigners earn less than U.S. workers. d. a trade deficit increases aggregate demand.
In equilibrium which of the following happens if the U.S. imposes tariffs on power tools?
a. U.S. net exports rise b. the exchange rate falls c. U.S. production of power tools rises d. All of the above are correct.