A current account deficit is
A) good because a country wants to own the others.
B) bad because every country should have a surplus.
C) good because it allows to smooth consumption.
D) it does not matter.
C
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In the circular flow model, the expenditures on goods and services flow in the
A) same direction as goods and services in all cases. B) same direction as goods and services only if they both flow through the goods market. C) same direction as goods and services only if they both flow through the factor market. D) opposite direction as goods and services. E) same direction as factor markets.
The formula for total fixed cost is
A) TFC = TVC - TC. B) TFC = TC - TVC. C) TFC = TC/TVC. D) TFC = TC + TVC.
If the price elasticity of supply for a good is equal to infinity, then the
a. supply curve is vertical. b. supply curve is horizontal. c. supply curve also has a slope equal to infinity. d. quantity supplied is constant regardless of the price.
"Demand-side fiscal policy is capable of changing Real GDP." This statement would be most likely to be said by an economist who believes that
A) the AS curve is vertical. B) the AS curve is upward sloping. C) complete crowding out exists. D) there is little, if any, crowding out. E) b and d