Government purchases
a. are only weakly related to aggregate income
b. include spending on goods and services plus transfer payments
c. are inversely related to aggregate income
d. are inversely related to the price level
e. are inversely related to the interest rate
A
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In the circular flow model, households earn their incomes in the
A. product markets. B. resource markets. C. capitalist markets. D. money markets.
When the United States has a deficit on its current account, this means that
A. the dollar value of goods exported must exceed the dollar value of goods imported. B. in this year, Americans supplied more dollars than were demanded by foreigners for purchasing American goods and services and for interest and investment income. C. in this year, Americans supplied fewer dollars than were demanded by foreigners for purchasing American goods and services and for interest and investment income. D. the dollar value of goods imported must exceed the dollar value of goods exported.
Import substitution policies make use of
A) tariffs that discourage goods from entering a country. B) quotas applied to goods that are shipped abroad. C) production subsidies granted to industries with comparative advantage. D) tax breaks granted to industries with comparative advantage. E) production facilities provided by industrialized countries.
Describe the principal costs of unemployment. Are there any benefits to unemployment?
What will be an ideal response?