The open economy effect refers to the fact that
A) the position and shape of the long run aggregate supply curve is partially due to the fact that we import goods.
B) the slope of the aggregate demand curve is partially explained by the reduction in the desire to buy fewer U.S. goods by U.S. residents and foreign residents as a result of a higher price level.
C) the immigration policies of the United States are disruptive to labor markets.
D) the aggregate supply curve shifts when the economy grows.
B
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Refer to the table above. When the price is ________ and the quantity is ________, social surplus is maximized
A) $8; 5 units B) $6; 4 units C) $4; 4 units D) $2; 8 units
Which of the following is TRUE about current cost method and market value method?
A) They are used by the BEA to place current values on foreign indirect investments. B) These methods lead to the same valuations. C) Based on the current cost method, the BEA's 2009 estimate of U.S. net foreign wealth was $2,737.86 billion. D) The current cost method is preferred by the BEA. E) Foreign direct investments of the U.S. are valued at their original purchase price.
Which statement is true?
A. Our rate of productivity increase was greater in the 1980s than the 1960s. B. The key to productivity growth is an increasing labor force. C. Rising productivity could come about with the same output from fewer units of input. D. We have a higher growth rate than the Chinese even though they have a higher savings rate.
Most people who live in market-oriented economies would
a. oppose trying to block better products that lower the cost of services. b. support trying to block better products that lower the cost of services. c. oppose trying to block better products that lower the cost of labor. d. support trying to block better products that lower the cost of labor.