GDP is $16 trillion. If consumption is $10 trillion, investment is $2 trillion, and Government purchases are $4 trillion then
a. exports are equal to imports.
b. net exports are positive.
c. net exports are negative.
d. there is a balance of trade deficit.
a. exports are equal to imports.
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Open market operations intended to offset movements in noncontrollable factors (such as float) that affect reserves and the monetary base are called
A) defensive open market operations. B) dynamic open market operations. C) offensive open market operations. D) reactionary open market operations.
In Chinese coastal provinces, brick housing for a fast expanding middle class is very comparable in size to housing in the U.S. for a family with median income of $51,000 because
a. median income per capita has risen in China to nearly equal median income in the U.S. b. the Chinese government builds much of the housing in China c. construction companies have begun to migrate to the coastal provinces of China d. housing is an income inferior good e. bricks, trade skill workers and construction labor are very cheap in China
Which of the following would be a concern of normative economics?
a. measuring the actual distribution of income in the economy b. recommending a change in government policy to make the distribution of income more equitable c. determining the impact of higher income taxes on the distribution of income d. determining the impact of a lower federal budget deficit on the distribution of income e. measuring the change in the nation's income distribution since 1960
When the equilibrium price level adjusts to an increase in autonomous investment spending, the impact of the multiplier effect resulting from that spending increase
A. will increase real GDP by an amount smaller than the multiplier effect would indicate. B. is only felt when there are changes in consumption. C. will increase nominal GDP by an amount smaller than the multiplier effect would indicate. D. will have no impact on the real GDP.