The capital and financial account measures ________
A) foreign investment in the United States minus U.S. investment abroad
B) capital produced outside of the United States minus capital produced inside the United States
C) capital used inside the United States but manufactured outside the United States
D) capital used outside the United States but manufactured inside the United States
A
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Goods that are produced this year, stored in inventories, and then sold to consumers next year
A) count in this year's GDP. B) count in next year's GDP. C) count in both this year's and next year's GDP. D) are not counted as a part of GDP.
The simple accelerator theory suggests that investment will be rising when
A) output is rising. B) the growth of output is rising. C) output is high. D) the growth of output is high.
With a fixed exchange rate, an increase in the domestic price level will, for a constant foreign price level,
a. increase exports and decrease imports. b. make foreign goods relatively more expensive to U.S. citizens but U.S. exports will be relatively cheaper to foreigner buyers. c. increase both exports and imports. d. make foreign goods relatively cheaper to U.S. citizens but U.S. exports will be more expensive to foreign purchasers.
Which of the following conditions describes a recessionary gap?
A) The short-run equilibrium level of real GDP is above the long-run level of real GDP. B) The short-run equilibrium level of real GDP is below the long-run level of real GDP. C) The actual interest rate is above the equilibrium interest rate. D) The actual interest rate is below the equilibrium interest rate.