If exports and imports both rose, but exports rose more than imports,
a. AD would decrease
b. AD would increase.
c. AD would be unaffected.
d. AD could either increase or decrease.
b
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The figure above shows the market for tires. The government has imposed a tax on tires, and the buyers pay ________ of the tax
A) $10 B) $20 C) $50 D) $60 E) $30
Consider the market for cable television, a natural monopoly, shown in the figure above. If the regulator imposes an average cost pricing rule, deadweight loss is equal to
A) $5 million. B) $0 million. C) more than $10 million and less than $20 million.. D) $20 million or more.
Suppose your expenses for this term are as follows: tuition: $10,000, room and board: $6,000, books and other educational supplies: $1,000
Further, during the term, you can only work part-time and earn $8,000 instead of your full-time salary of $20,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college? A) $11,000 B) $17,000 C) $23,000 D) $29,000
In the last half of the 1990s, the usual short-run trade-off between inflation and unemployment did not arise because:
A. the Fed held interest rates constant. B. the federal government balanced its budget. C. the U.S. personal savings rate rose. D. productivity (and thus aggregate supply) grew faster than previously.