By itself, an increase in exports
A) increases GDP.
B) decreases GDP.
C) means imports decrease by the same amount.
D) can either increase or decrease GDP, depending on whether the exports are durable or nondurable.
A
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Over the past several decades, farm employment has:
A. grown absolutely but declined as a percentage of total employment. B. declined both absolutely and as a percentage of total employment. C. increased both absolutely and as a percentage of total employment. D. declined absolutely but increased as a percentage of total employment.
Suppose the market supply is initially at S1 and a price ceiling is set at 8. If supply shifts from S1 to S2, then
A. The price ceiling will no longer bind. B. The market will not reach equilibrium. C. The size of the shortage will increase. D. The price ceiling will prevent output from changing.
Suppose we observe that both the equilibrium price of film cameras and the equilibrium quantity of film cameras have fallen. Which of the following could be responsible for this?
A) Consumers' preferences changed in favor of digital cameras. B) technological advances in film camera production C) Workers who make cameras received a pay raise. D) The price of digital cameras increased.
Answer the next question based on the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 12 percent. All figures are in billions of dollars.AssetsLiabilities & Net WorthReserves$60 Checkable Deposits$150Loans100 Stock Shares135Securities25 Property100?Refer to the above data. If the commercial banking system actually loans the maximum amount it is able to lend, excess reserves will fall:
A. by $22 billion. B. by $28 billion. C. by $20 billion. D. to zero.