What are the two channels through which the world economy can affect U.S. aggregate demand? State what changes in the world economy can increase U.S. aggregate demand
What will be an ideal response?
The world economy can affect aggregate demand through the foreign exchange rate and foreign income. If the foreign exchange rate falls, then U.S. aggregate demand increases because U.S. exports become cheaper to foreign residents while U.S. imports become more expensive to U.S. citizens. If foreign income increases, then U.S. aggregate demand increases because foreign citizens will spend some of their increased income on U.S.-produced goods and services.
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A bond is
A) a legal claim to a part of a corporation's future profits that includes voting rights. B) a legal claim to a part of a corporation's future profits that does not include voting rights. C) a legal claim against a firm, providing a fixed annual coupon payment and a lump-sum payment at maturity. D) a nonlegal promise to provide an annual payment to the holder when the corporation makes profits.
Look at the following data: consumption = $915 billion; exports = $40 billion; imports = $33 billion; inventory investment = $123 billion; fixed investment = $500 billion; government purchases = $300 billion. GDP is equal to
A) $1,632 billion. B) $1,466 billion. C) $1,911 billion. D) $1,845 billion. E) none of the above
In 2017, health care's share of gross domestic product in the United States
A) had returned to its 1995 level. B) had declined to only 6.5 percent. C) was about three times as high as it was in 1965. D) reached a level of 75 percent.
Some baseball parks have a "7th Inning Stretch" where beer, hotdogs and other food items are offered for sale at a lower price
What economic concept is being used by the baseball park to justify this practice? If it is successful at selling more food and drink with this practice why don't they lower prices at the beginning of the game?