Which of the following is not true about the U.S. trade balance since 1979?
a. The balance of trade has been in deficit.
b. During recessions the balance has usually been flat.
c. The balance of trade has been in surplus.
d. When the economy expanded, the demand for imports increased.
e. When the economy expanded, the trade balance worsened.
C
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The manager of Steel Works learns of a new technological interdependency between the intermediate stage and the final stage of production. If Steel Works currently contracts with another firm for the intermediate stage of production, which of the following is true?
A) The manager has less of an incentive to integrate backward. B) The manager has more of an incentive to integrate backward. C) The manager has more of an incentive to integrate forward. D) The manager has less of an incentive to integrate forward.
There are at least ______ factors in addition to price that affect demand.
a. three b. four c. five d. two
Suppose the MPC is 0.9 . There are no crowding out or investment accelerator effects. If the government increases its expenditures by $30 billion, then by how much does aggregate demand shift to the right? If the government decreases taxes by $30 billion, then by how far does aggregate demand shift to the right?
a. $283 billion and $254.7 billion b. $283 billion and $283 billion c. $300 billion and $270 billion d. $300 billion and $300 billion
Sustained economic growth and rising living standards was first made possible because of the _____________.
Fill in the blank(s) with the appropriate word(s).