The sum of consumption (C), investment (I), government spending (G), and net exports (X-M) is called:
a. autonomous spending.
b. aggregate expenditures.
c. Keynesian income
d. wealth.
b
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
According to the Heckscher-Ohlin model
A) the gainers from trade could compensate the losers and still retain gains. B) everyone gains from trade. C) the scarce factor gains from trade and the abundant factor loses. D) a country gains from trade if its exports have a high value added. E) only the country with the more advanced technology gains from trade.
A share of stock in a corporation is
A) a guarantee to a fixed amount of income from the corporation. B) a legal claim to a lump-sum payment at a specified point of time in the future. C) a legal claim to a dividend, regardless of the corporation's ability to pay its interest payments. D) a legal claim to a share of the company's future profits.
The major determinant of the current account is the
A. balance of trade. B. exchange rates. C. imports. D. exports.