The value of the goods and services Australia purchases from the U.S. are less than the value of goods and services the U.S. purchases from Australia. The U.S. has
a. positive net exports with Australia and a trade surplus with Australia.
b. positive net exports with Australia and a trade deficit with Australia.
c. negative net exports with Australia and a trade surplus with Australia.
d. negative net exports with Australia and a trade deficit with Australia.
d
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Cost-of-living adjustments are
A) changes in the basket of goods used in calculating the CPI. B) automatic wage changes based on the CPI which are included in some union contracts. C) quality measurements included in the calculation of the CPI. D) averages of neighboring years' base prices used in constructing the CPI.
In the Keynesian model, what are the effects (on output, the real interest rate, and the price level) of an adverse productivity (i.e., aggregate supply) shock?
What will be an ideal response?
In a frictionless world
A) Fully funded social security must necessarily make everyone better off, as it provides for retirement. B) Fully-funded social security is a constraint on private saving behavior, and therefore cannot make anyone better off. C) Fully funded social security is always preferred to pay-as-you-go social security. D) Fully funded social security is more efficient, because it is a private program instead of a government program.
Because incentive contracts result in more risk placed on the part of agents
a. the average level of compensation typically falls b. the average level of compensation typically rises c. compensation is unaffected d. employers want employees to insure against wild compensation swings