When the U.S. price level decreases relative to the rest of the world:
A. exports and net exports will increase.
B. imports and net exports will increase.
C. exports will increase and net exports will decrease.
D. exports will decrease and net exports will increase.
A. exports and net exports will increase.
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At a perfectly competitive firm's short-run equilibrium level of output,
a. P = MR = MC. b. P = MR, but MR does not equal MC. c. P = MC, but MR does not equal MC. d. MR = MC and P < MR.
The long-run equilibrium price level is the price level the economy is expected to reach when the
a. economy produces its potential output b. Fed has stabilized interest rates c. federal budget is balanced d. discount rate equals the prime rate e. inflation rate is zero
If consumption expenditures are $200 billion, total investment is $50 billion, government purchases are $40 billion, exports are $45 billion, imports are $40 billion, aggregate expenditures must be:
A. $275 billion. B. $295 billion. C. $320 billion. D. $395 billion.
The cyclical deficit is $400 billion, potential output is $9 trillion and the tax rate is 16 percent. With this information, we can infer that the actual output of this economy is:
A. $9 trillion. B. $6 trillion. C. $11.5 trillion. D. $6.5 trillion.