Table 36-2
?
Domestic
?
?
?
GDP
Expenditure
?
Exports
Imports
Total Expenditures
(Y)
C+ I + G
(X)
(IM)
C+ I + G + (X?IM)
$2,500
$3,100
$650
$250
_____
3,000
3,400
650
300
_____
3,500
3,700
650
350
_____
4,000
4,000
650
400
_____
4,500
4,300
650
450
_____
5,000
4,600
650
500
_____
5,500
4,900
650
550
_____
From Table 36-2, what can you conclude about net exports as GDP rises?
A. Net exports rise and then fall as GDP rises.
B. Net exports are constant as GDP rises.
C. Net exports rise as GDP rises.
D. Net exports fall as GDP rises.
Answer: D
You might also like to view...
The cross-price elasticity of demand between telephones and ramen noodles is most likely:
A. positive. B. negative. C. zero. D. greater than one.
If the economy has a cyclically adjusted budget surplus, this means that:
A. the public sector is exerting an expansionary impact on the economy. B. tax revenues would exceed government expenditures if full employment were achieved. C. the actual budget is necessarily also in surplus. D. the economy is actually operating at full employment.
Refer to the information provided in Figure 10.3 below to answer the question(s) that follow. 
Figure 10.3 Refer to Figure 10.3. If labor supply is given by S0 and the firm is using K1 units of capital, this firm should hire ________ units of labor to maximize profit.
A. I0 B. I1 C. I2 D. I3
Last year a country's real GDP grew by 4%, it's inflation rate was 2.5%, and it's government budget deficit was about $250 billion. It's debt to GDP ratio was unchanged. About what was it's debt at the start of last year?
a. 16.7 trillion b. 10.0 trillion c. 6.25 trillion d. 3.85 trillion