Discuss the link between real GDP and imports
What will be an ideal response?
Imports are one of two components that are influenced by changes in U.S. real GDP and so imports are referred to as an induced expenditure. Other things the same, an increase in U.S. real GDP leads to an increase in U.S. imports. As U.S. income increases, households purchase more domestic as well as more foreign goods and services.
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In the figure above, if information technologies are introduced that are complements for high-skilled workers and substitutes for low-skilled workers, the wage rate of high-skilled workers will ________ and the wage rate of low-skilled workers will
________. A) rise; fall B) fall; rise C) fall; fall D) rise; rise
Compare how exports and imports affect consumers and producers in a domestic economy.
What will be an ideal response?
If there is 3 percent frictional unemployment, 4 percent structural unemployment, and ?2 percent cyclical unemployment, then the natural rate of unemployment equals:
A. 1 percent. B. 7 percent. C. 2 percent. D. 5 percent.
The financing of health care through insurance has:
A. Decreased absolute total expenditures on health care B. Resulted in consumers directly paying less than the full price of health care C. Increased the marginal utility of health care services D. Made no change in health care consumption