A permanent reduction in net exports leads to
A. a proportional increase in real Gross Domestic Product (GDP).
B. a more than proportional decrease in real Gross Domestic Product (GDP).
C. a reduction in taxes, autonomous government spending, and a fall in real Gross Domestic Product (GDP).
D. a less than proportional decrease in real Gross Domestic Product (GDP).
Answer: B
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Which of the following would you expect to increase the equilibrium interest rate?
A) an increase in the budget deficit B) a decrease in the profitability of investment projects firms are considering C) a change from an income tax to a consumption tax D) an increase in the percentage of income after net taxes that households save Figure 21-1
Which of the following will most likely cause an increase in the long-run aggregate supply curve?
a. a reduction in the general level of prices b. an increase in the general level of prices c. an improvement in technology that substantially reduces the cost of generating energy d. an increase in taxes that makes it more expensive for Americans to import crude oil
A tax can always be found and implemented that will correct a cause of an external effect
Indicate whether the statement is true or false
As a manager holding an auction with correlated or common values, you want buyers to place bids that are ________ their estimated ________ and sellers to place bids that are close to their estimated ________.
A) close to; valuations; costs B) far from; valuations; costs C) close to; costs; valuations D) far from; costs; valuations