A bridge built by the government of Ritzland collapsed in the same year it was constructed. If the total cost of building the bridge was $4 million, which of the following will happen as a result of its collapse?
A) Ritzland's GDP will decrease. B) Ritzland's GDP will remain unchanged.
C) Ritzland's trade surplus will increase. D) Ritzland's trade deficit will increase.
B
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The difference between savings and saving
A) is nonexistent. B) is that savings is measured in real terms while saving is measured in nominal terms. C) is that savings is a stock concept and saving is a flow concept. D) is that savings occurs when consumption does not and saving is used to purchase consumption goods.
Suppose that the price of an identical sport-utility vehicle is $32,000 in U.S. dollars in the United States and $32,000 in Canadian dollars in Canada
Suppose in addition that the exchange rate between Canada and the United States is one Canadian dollar equals $0.75 U.S. dollar. Does purchasing power parity hold for SUVs between the United States and Canada? A) Yes, because SUVs have the same price in each local currency. B) No, because SUVs are more expensive in Canada than the United States. C) No, because SUVs are more expensive in the United States than in Canada. D) Without knowing interest rates, we can't say.
Since income distribution and poverty are intrinsically related, they cannot be approached separately
Indicate whether the statement is true or false
On a short-run macro model diagram, the impact of a decrease in government purchases (G) is illustrated by
a. a downward shift of the aggregate expenditure line by the full amount of the change in G b. an upward shift of the aggregate expenditure line followed by an equal downward shift of that line c. a leftward shift of the money supply curve d. a downward shift of the aggregate expenditure line by an amount less than the change in G e. the increase in real income