Suppose that there is a current account deficit of $250 billion and a financial account surplus of $250 billion. It can be concluded that the
A. overall balance of payments equals $500.
B. overall balance of payments is balanced.
C. overall balance of payments is more than $250.
D. overall balance of payments is not balanced.
Answer: B
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The Heckscher-Ohlin model predicts all of the following EXCEPT
A) the volume of trade. B) which country will export which product. C) which factor of production within each country will gain from trade. D) that relative wages will tend to become equal in both trading countries. E) that trade increases a country's overall welfare.
Which type of unemployment is the most difficult to cure?
a. functional b. seasonal c. cyclical d. structural
Graphically an increase in the short-run aggregate supply line represents a(n) ________, and a shift leftward of the long-run aggregate supply line represents a(n) ________.
A. adverse inflation shock; shock to potential output B. favorable inflation shock; shock to potential output C. shock to potential output; favorable inflation shock D. shock to potential output; adverse inflation shock
Capital accumulation definitely
A) has no impact on the production possibilities frontier. B) shifts the production possibilities frontier inward. C) makes the production possibilities frontier steeper. D) shifts the production possibilities frontier outward.