If exports rise and imports fall, then:

A. GDP will increase.
B. GDP will decrease.
C. GDP may remain unchanged.
D. net exports will fall.


Answer: A

Economics

You might also like to view...

Refer to Figure 7.1. Suppose that instead of $350, Angus earns only $250 by playing the bagpipes, but all other earnings remain the same. If there is no ordinance against loud music, the Coase theorem predicts that

A) Dudley will pay Angus to not play the bagpipes. B) Angus will pay Dudley so Angus can play the bagpipes. C) Dudley will do nothing and Angus will mop floors. D) no bargain can be reached between Angus and Dudley.

Economics

We often choose the school we attend on the basis of how popular it seems to be. Such behavior is an example of ________

A) anchoring B) herding C) signaling D) sniping

Economics

An inflationary gap will exist when the full employment level of GDP is

a. equal to equilibrium GDP. b. greater than equilibrium GDP. c. less than equilibrium GDP. d. greater than disposable income.

Economics

Shifts in monetary policy will

a. stimulate output and employment almost immediately, and this will make it easier for policy-makers to change monetary policy in a manner that will promote macroeconomic stability. b. stimulate output and employment almost immediately, and this will make it more difficult for policy-makers to change monetary policy in a manner that will promote macroeconomic stability. c. stimulate output and employment with time lags that are long and variable and this will make it easier for policy-makers to change monetary policy in a manner that will promote macroeconomic stability. d. stimulate output and employment with time lags that are long and variable and this will make it more difficult for policy-makers to change monetary policy in a manner that will promote macroeconomic stability.

Economics