Because the United States has a flexible exchange rate system, one would expect that
a. U.S. exports and imports would be in balance.
b. the U.S. current account would be in balance.
c. U.S. exports to China would be in balance with U.S. imports from China.
d. all of the above are true.
e. none of the above are true.
E
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In equilibrium, the real value of household income must equal
A) the real value of output produced by firms. B) the real value of all expenditures. C) the sum of all goods produced in a year. D) net GDP.
Suppose Japan is currently running a current account surplus. The most effective way of eliminating this current account surplus would be to temporarily ________ government purchases and ________ the domestic money supply
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. 
If capital is fixed at three units, how much does the fourth unit of labor add to total output?
A. 16 B. 28 C. 36 D. 34 E. none of the above
An economic model is useful only if it:
A. contains no positive statements. B. captures all the complexities of reality. C. yields accurate predictions. D. has both macro- and microeconomic applications.