If a nation's imports exceed its exports:
a. net exports will be positive
b. GDP will be less than the sum of consumption, investment, and government purchases.
c. GDP will be greater than the sum of consumption, investment, and government purchases.
d. none of the above apply.
b
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If New Zealand is operating at potential GDP, which of the following is true?
i. New Zealand only has frictional and structural unemployment. ii. There is no inflation in New Zealand. iii. New Zealand has positive net exports. A) i, ii and iii B) i only C) i and ii D) i and iii E) ii only
Macroeconomists are distinguished from microeconomists because macroeconomists are more interested in
a. inflation and unemployment than in individual markets. b. large corporations rather than small businesses. c. inflation in the United States rather than inflation in Costa Rica. d. the demand for oil rather than the demand for corn.
Refer to the above information. If planned investment was $20 billion, government purchases of goods and services were $20 billion, and taxes and net exports were zero, then the equilibrium level of GDP would be:
The table shows a consumption schedule. All figures are in billions of dollars.
A. $600 billion
B. $640 billion
C. $680 billion
D. $720 billion
Refer to Labor Demand and Labor Supply. Suppose firms in the industry earn zero profit. The total rental payment made to the industry's capital is measured by
a. area A.
b. area B.
c. area A + B.
d. area B + C.