In a closed economy, imports are ______ and exports are ______.
a. positive; negative
b. negative; positive
c. zero; zero
d. positive; zero
c. zero; zero
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Which of the following represents the true economic cost of production when firms produce goods that generate negative externalities?
A) the private cost of production B) the external cost of production C) the social cost of production D) the explicit cost of production
The ease with which an asset can be converted into the medium of exchange is known as _____
Fill in the blank(s) with correct word
In the 1970s, the Fed accommodated a(n)
a. adverse supply shock and so contributed to higher inflation. b. adverse supply shock and so contributed to lower inflation. c. favorable supply shock and so contributed to higher inflation. d. favorable supply shock and so contributed to lower inflation.
What is the effect of net exports, either positive or negative, on equilibrium GDP?
What will be an ideal response?