Gross exports depend on the behavior of foreign businesses and consumers.
Answer the following statement true (T) or false (F)
True
The amount of exports the United States sells depends on how well consumers and businesses are doing overseas; a recession will leave them with less income so they will buy fewer U.S. exports. Likewise, U.S. imports depend directly on the U.S. economy. Higher U.S. incomes mean more consumption of both U.S. GDP as well as foreign production.
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Monetarism is a school of thought put forth by Milton Friedman. He argued that the economy would most likely
A) be below potential GDP. B) be above potential GDP. C) be unstable. D) be at potential GDP.
Which of the following actions would the Fed undertake if it wants to follow a more restrictive monetary policy?
a. sell some of its holdings of government bonds b. decrease government expenditures c. urge the Treasury to sell more U.S. securities d. reduce the reserve requirements
?Refer to Exhibit 4-3. The University Theater faces market demand curve D0 and has begun charging $10, up from $5, for tickets for Friday and Saturday night shows. As a result, students have
A. increased their demand for tickets to Q4. B. increased their quantity of tickets demanded to Q4. C. decreased their demand for tickets to Q1. D. decreased their quantity of tickets demanded to Q1.