Ceteris paribus, how does an expansion in the United States affect U.S. net exports?
What will be an ideal response?
As GDP increases in the United States due to the expansion, the incomes of households rise. Households respond by increasing their purchases of goods and services. Some of the increase in purchases includes domestic goods and services; some of the increase includes foreign produced goods and services. This essentially raises imports. Assuming that exports do not change, net exports will fall.
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When the price level falls, the aggregate planned expenditure curve shifts ________, equilibrium expenditure ________ and there is a movement ________ along the aggregate demand curve
A) upward; decreases; downward B) upward; increases; downward C) upward; increases; upward D) downward; decreases; downward E) downward; increases; upward
Apple's decision in 2002 to focus on developing a smartphone rather than a tablet computer exemplifies the
A) refusal of firms to invest in more than one project where unlimited resources are involved. B) trade-off that firms face due to limited resources. C) refusal of firms to invest in more than one project where limited resources are involved. D) trade-off that firms face due to unlimited resources.
Banks can lower the cost of information production by applying one information resource to many different services. This process is called
A) economies of scale. B) asset transformation. C) economies of scope. D) asymmetric information.
A resource that can substitute for something but at a higher price is called
a. A virgin resource b. A marginal resource c. A reserve resource d. An index resource e. A backstop resource