The U.S. is able to maintain a large trade deficit because:
A. when the business cycle is in a boom, it will be a trade surplus.
B. it is balanced by a large capital surplus.
C. it is balanced by a large capital deficit.
D. None of these statements is true.
B. it is balanced by a large capital surplus.
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The larger the wealth effect, the less likely it is that a wage tax will give rise to a Laffer curve that has a downward sloping portion.
Answer the following statement true (T) or false (F)
As a result of an increase in tariffs, imports decrease and government revenue increases
Indicate whether the statement is true or false
An increase in consumption at any given level of income is likely to lead to:
a) Higher aggregate demand b) An increase in exports c) A fall in taxation revenue d) A decrease in import spending
Suppose that a drought significantly reduces agricultural production one year. Which of the following would likely occur as a result of the bad weather?
a. The short-run aggregate supply curve will shift to the right, and the short-run Phillips Curve will shift to the right. b. The short-run aggregate supply curve will shift to the right, and the short-run Phillips Curve will shift to the left. c. The short-run aggregate supply curve will shift to the left, and the short-run Phillips Curve will shift to the right. d. The short-run aggregate supply curve will shift to the left, and the short-run Phillips Curve will shift to the left.