In general, countries export products they can produce more cheaply in return for products that are unavailable domestically or are cheaper elsewhere
Indicate whether the statement is true or false
true
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An indirect effect of an increase in the price level works through
A) changes in trade balances as domestic goods become more expensive, causing interest rates to move in the opposite direction from the change in the exchange rate. B) interest rates as people save more as the higher prices make their money balances less attractive. C) people substituting out of domestic goods and into foreign goods as exchange rates rise. D) interest rates as people borrow to maintain their money balances, bidding up interest rates and reducing total planned real expenditures.
Which groups tend to have greater difficulties finding employment as a result of the minimum wage?
A) Minorities B) Teens C) Those with little work experience D) All of the above.
From 1900 to 2013, real GDP per person has had two important attributes
A) It has grown substantially over time and there are small differences from country to country. B) It has grown unevenly over time in the U.S. but it has grown substantially. C) It has grown evenly over time in the U.S. and there are huge differences from country to country. D) It has fluctuated around a trend in the U.S. but it has not grown much for all the Southeast Asian countries. E) It has doubled in the U.S. but there have been many recession periods.
If the desired fiscal stimulus is $20 billion and the desired AD increase is $50 billion, we can conclude that
A. There is an inflationary gap. B. The MPC is 0.60. C. The multiplier is 2.0. D. The MPS is 0.60.