The balance of trade is the value of a nation's ____________
a. goods and service exports times goods and service imports
b. goods exports subtracted from goods imports
c. goods imports subtracted from goods exports
d. net goods imports plus net capital inflows
c
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The AE curve illustrates the relationship between
A) real GDP and actual expenditure. B) the interest rate and aggregate planned expenditure. C) real GDP and the interest rate. D) aggregate planned expenditure and real GDP. E) the quantity of real GDP demanded and the price level.
Explain when a country would face a balance of payments deficit and when it would face a balance of payments surplus if it was operating under a fixed exchange rate system
What will be an ideal response?
"A drop in government expenditures lowered output in the short run, but left output unaffected in the long run." This statement implies that the price level __________ in the long run, causing the interest rate to __________
A) rose; rise B) rose; fall C) fell; rise D) fell; fall
Perfectly competitive markets are:
A. the most common type of market in our economy. B. hard to find in a real world setting. C. made up principally by consumer goods. D. typically found in industrial sectors of our economy.