Suppose a country's net exports equal 0. If the volume of exports increases without any change in the volume of imports, the country will experience a ________
A) budget surplus B) budget deficit C) trade deficit D) trade surplus
D
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"The short-run Phillips curve shifts leftward when the inflation rate rises." Is the previous statement correct or incorrect?
What will be an ideal response?
Which of the following is not considered part of the productive resource, land?
a. raw materials. b. intellectual power. c. water resources. d. atmospheric conditions.
Potential weaknesses of nominal GDP targeting include
A) it requires accurate estimates of potential GDP growth, which are not easy to achieve. B) it implies that the central bank will respond to slowdowns in the real economy even if inflation is not falling. C) real GDP growth that is below potential or inflation that is below the inflation objective will encourage more expansionary monetary policy. D) it focuses not only on controlling inflation but also explicitly on stabilizing real GDP.
If the rate of inflation in the United States rises relative to the rate of inflation in foreign nations, U.S. net exports will tend to ____, causing the exchange value of the U.S. dollar to ____
a. rise; rise b. rise; fall c. fall; rise d. fall; fall