According to this Application, as the U.S. economy grew from the early 1990s, U.S. exports also increased as our demand for foreign products promoted growth in foreign countries. This increase in exports would tend to
A) decrease U.S. GDP and reduce unemployment in the short run.
B) decrease U.S. GDP and increase unemployment in the short run.
C) increase U.S. GDP and reduce unemployment in the short run.
D) increase U.S. GDP and increase unemployment in the short run.
C
You might also like to view...
Hermione and Ron are at a sweet shop in London. Hermione looks at the prices of ice cream and chocolate bars and says to Ron: "I can tell you what your marginal rate of substitution between ice cream and chocolate bars is at your best affordable
point." "No, you can't," says Ron. "You don't know my preferences and how much money I have." "I don't need to know all this because I know the prices," Hermione replies. Is she right? Explain.
The U.S. balance of trade: a. typically is positive since the United States exports far more goods than it imports. b. is the difference between merchandise exports and merchandise imports
c. includes net military transactions. d. Both b. and c. are correct.
Other things constant, if the demand for a final product is quite elastic, the demand for a resource used to produce the product will tend to be
a. highly inelastic. b. of unitary elasticity. c. a curve sloping upward to the right. d. quite elastic as well.
Policymaking in a representative democracy
a. is straightforward and does not involve any disagreement. b. benefits from the input of economists, even if their advice is not always followed. c. is conducted without the input of economists. d. is always based exclusively on the results of economic analysis.