Because it provides some indication of what is happening to U.S. claims on foreign wealth and the demand for imports and exports, the ________ is closely followed by economists wanting information on the future movement of exchange rates
A) trade balance
B) capital account
C) current account balance
D) statistical discrepancy
C
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Refer to Figure 10.1. If the level of real GDP is initially Y2, firms will ________ production until equilibrium is reached at ________
A) increase; Y2 B) decrease; Y2 C) increase; Y1 D) decrease; Y1
Economists who argue that advertising enhances market efficiency suggest that celebrity advertising signals inferior product quality
a. True b. False Indicate whether the statement is true or false
When the Shaffers had a monthly income of $4,000, they usually ate out 8 times a month. Now that the couple makes $4,500 a month, they eat out 10 times a month. Compute the couple's income elasticity of demand using the midpoint method. Explain your answer. Is a restaurant meal a normal or inferior good to the couple?
Gross domestic product understates the total production of final goods and services because of the omission of
A) exports. B) inflation. C) intermediate goods. D) household production.