Make a list of expenditures whose sum equals GDP
consumption, investment, government expenditures, and net exports.
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Your roommate Hansen argues that American producers cannot compete with foreign producers because wages are lower in foreign countries than in the United States. Hansen
A) is incorrect. Free trade raises living standards by increasing economic efficiency. B) is advancing the anti-dumping argument for protectionism. C) is correct in arguing that the high wages of U.S. workers make it impossible to compete with workers in low-wage countries. D) is right in asserting the need to protect high wages if the United States wishes to maintain its high standard of living.
The 2002 tax reform is a good example of special interests being less influential because Congress was considering comprehensive tax reform
a. True b. False
In the basic Keynesian model, the major determinant of consumption expenditures is:
a. the interest rate. b. inflation. c. investment. d. disposable income.
If the supply of loanable funds shifts right, then the equilibrium
a. levels of net capital outflow and domestic investment decrease. b. level of net capital outflow increases and the equilibrium level of domestic investment decreases. c. level of net capital outflow decreases and the equilibrium level of domestic investment increases. d. levels of net capital outflow and domestic investment increase.