Successful adjustment to external imbalance is likely to involve
a. expenditure-reducing policies
b. expenditure-switching policies
c. import compression
d. devaluation of the national currency
e. all of the above
E
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Which of the following is included as government purchases in gross domestic product (GDP)?
a. Social Security payments to elderly citizens b. Welfare benefits distributed to the poor c. Outright grants from government to recipients d. Payments to clerical workers hired by government e. Unemployment compensation benefits
An increase in the price level and a reduction in output would result from
a. a fall in stock prices. b. a decrease in the supply of an important resource. c. an increase in government expenditures. d. an increase in taxes.
An essential point, among many, in the refutation of the “cheap foreign labor” argument is that
A. foreign workers have a lower standard of living. B. foreign workers are less productive. C. low foreign wages mean fewer exports for the United States. D. the United States does not benefit from cheap foreign labor so the goods should be kept out.
Which of the following would call for outpayments from the United States?
A. The United States exports computer software. B. The United States purchases assets abroad. C. Foreigners purchase assets in the United States. D. Foreign tourists spend money in the United States.