If countries that imported goods and services from the United States recovered from recession, we would expect that U.S. net exports would
a) fall, making aggregate-demand curve shift to the right.
b) rise, making aggregate-demand curve shift to the left.
c) rise, making aggregate-demand curve shift to the right.
d) fall, making aggregate-demand curve shift to the left.
Ans: c) rise, making aggregate-demand curve shift to the right.
You might also like to view...
Which of the following is true about perfect competition?
a. Since a perfectly competitive seller can sell all he wants at the market price, her demand curve is horizontal at the market price over the entire range of output that she could possibly produce. b. Because perfectly competitive markets have many buyers and sellers, each firm is so small in relation to the industry that its production decisions have no impact on the market. c. Perfectly competitive markets have easy entry and exit. d. All of the above are true about perfect competition.
. In 2008, when the net worth of Trust Bank became negative, depositors made a beeline to withdraw their deposits. They feared that they might lose all of their deposits if they did not withdraw them. Given the macroeconomic dangers of such a situation, the government of the country decided to ensure that the depositors do not lose their money even if the bank goes bankrupt. The policy designed
by the government exemplifies _____. a. open market operations b. preferred risk policies c. deposit insurances d. quantitative easing
If all unwelcome or harmful activities were eliminated,
a. the benefits from eliminating these activities would exceed the cost of eliminating them b. there would be no remaining potential Pareto improvements c. society would be more efficient d. society would be less efficient e. the result would be Pareto efficient
An increase in the price level will
a. decrease the quantity of aggregate demand, shown as a downward movement along the existing aggregate demand curve b. decrease the quantity of aggregate demand, shown as an upward movement along the existing aggregate demand curve c. cause a rightward shift in the aggregate demand curve d. cause a leftward shift in the aggregate demand curve e. have no effect on the aggregate demand curve