A current account deficit exists when

(a) Government revenue exceeds spending
(b) Government spending exceeds revenue
(c) Imports exceed exports
(d) Exports exceed imports


(c)

Economics

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As a perfectly competitive firm's output increases, its total revenue ________ and its total cost ________

A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) does not change; increases

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The Fed operating procedures employed between 1979 and 1982 resulted in ________ swings in the federal funds rate and ________ swings in the M1 growth rate

A) increased; increased B) increased; decreased C) decreased; decreased D) decreased; increased

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The relationship between the quantity of labor supplied and the wage is governed by an income effect and a substitution effect

a. True b. False Indicate whether the statement is true or false

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Suppose the economy is in long-run equilibrium at an inflation rate of 1% Then inflation expectations rise to 2% and inflation rises to 3%. The increase in expected inflation shifts the short-run Phillips curve

a. right. Overall, unemployment moves above its natural rate. b. right. Overall, unemployment moves below its natural rate. c. left. Overall, unemployment moves above its natural rate. d. left. Overall, unemployment moves below its natural rate.

Economics