The primary source of purchasing power used to buy imported goods is
a. the monetary sector.
b. the balance of payments deficit.
c. the exports of a nation.
d. taxation and other revenue-generating activities.
C
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When producing 8 units of output, average fixed cost is $12.50 and average variable cost is $81.25. Total cost at this output level is
A. $93.75. B. $97.78. C. $750. D. $880.
Assuming that C = $6,200, I = $1,300, G = $1,100, Exports = $630, Imports = $750, and Depreciation = $600 (all in billions of dollars), GDP equals $7,880
Indicate whether the statement is true or false
A decrease in ________ leads to an equal ________ in the monetary base in the short run
A) float; increase B) float; decrease C) Treasury deposits at the Fed; decrease D) discount loans; increase
When the unemployment rate is less than the natural unemployment rate, real GDP is ________ than potential GDP and the output gap is ________.
A) smaller; negative B) smaller; positive C) greater; positive D) greater; equal to zero E) greater; negative