For country A, an export is a good produced in:
A. country B and purchased by residents of country B.
B. country B and purchased by residents of country A.
C. country A and purchased by residents of country B.
D. country A and purchased by residents of country A.
Answer: C
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The credit demand curve is:
A) vertical. B) downward sloping. C) horizontal. D) upward sloping.
A fiscal policy designed for maximum stimulus of economic growth must discourage current ________ and thus makes for, at least in the short run, a ________ even income distribution
A) consumption, less B) consumption, more C) private saving, less D) private saving, more
A laissez-faire economy has
A. very little government regulation of the economy. B. rules that promote social equality. C. a centrally planned economy. D. a large amount of government regulation.
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower