A permanent reduction in international trade barriers would
A) decrease long-run aggregate supply.
B) increase long-run aggregate supply.
C) decrease aggregate demand.
D) increase aggregate demand.
B
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If the market price of a product increases, then the total
A) consumer surplus will decrease. B) consumer surplus will increase. C) revenues of sellers will definitely increase. D) revenues of sellers will definitely decrease.
Any change that reduces desired saving relative to desired investment (for a given level of output) causes the real interest rate to ________ and shifts the IS curve ________
A) increase; down and to the left B) increase; up and to the right C) decrease; down and to the left D) decrease; up and to the right
Intermediate goods are not included in GDP because:
A. certain goods that are used in the production of a final good would be counted twice. B. the value of goods bought by producers to make something else would be counted twice. C. the value of goods used by firms to make the goods they sell is included in the firm's product; accounting for the value twice would overestimate GDP. D. All of these statements are true
If the government of India implemented a policy that decreased national saving, its real exchange rate would
a. depreciate and Indian net exports would rise. b. depreciate and Indian net exports would fall. c. appreciate and Indian net exports would rise. d. appreciate and Indian net exports would fall.