Which of the following events would not be recorded in the U.S. balance of payments?
a. The money supply of a foreign nation increases.
b. Oxfam America, a U.S. relief agency, sends food to drought victims in sub-Saharan Africa.
c. Oxfam America, a U.S. relief agency, sends farm equipment to drought victims in sub-Saharan Africa.
d. The Pentagon stations troops in Saudi Arabia.
e. Pepsi-Cola sends its soft drink to Russia; in return, the United States gets Stolichnaya vodka. No money changes hands.
A
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The price level in the economy between 2014 and 2015 rose from 100 to 105. Between 2015 and 2016, the price level rose from 105 to 110.25. How does the short-run Phillips curve predict the unemployment rate will change as a result?
A) The unemployment rate will increase since inflation increased. B) The unemployment rate will decrease since inflation increased. C) The unemployment rate will decrease since inflation decreased. D) The unemployment rate would not change since there is no change in the rate of inflation.
With regard to incomes at the time of the Revolution,
(a) colonial incomes before taxation were high, but because of heavy taxation, after-tax incomes were lower than those of the British. (b) there is no data available that provide any information on the subject. (c) both before-tax and after-tax colonial incomes were lower than those in England. (d) incomes in the colonies were higher than in England, especially after-tax incomes, because of relatively light taxation of the colonists.
Businesses in the United States cut their investment projects by $30 billion. If the MPC is 2, what will be the impact on the national income (Y)?
a. Y will fall by $15 billion. b. Y will fall by $30 billion. c. Y will fall by $60 billion. d. Y will fall by $120 billion.
What is a recession?
(A) A very mild and short expansion. (B) A period when the economy is neither expanding nor contracting. (C) A period when real GDP falls for at least six months. (D) A long and severe depression.