Why do booms and recessions tend to be transmitted across national borders?
The GDPs of the major economies are linked by trade. A boom in one country tends to raise its imports and hence push up exports and GDP in other countries. Similarly, a recession in one country tends to pull down GDP in other countries. Suppose a boom abroad raises GDPs in foreign countries. With rising incomes, foreigners will buy more American goods?which means that U.S. exports will increase. But an increase in our exports will, via the multiplier, raise GDP in the United States. By this mechanism, rapid economic growth abroad contributes to rapid economic growth here. The same mechanism also operates in reverse.
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If your nominal income is $75,000 and your real income in base year prices is $60,000, what is the CPI?
A) 250 B) 125 C) 80 D) 200 E) 100
By the late 1950s, dollars held by foreign central banks exceeded the official dollar value of U.S. gold reserves
Indicate whether the statement is true or false
As output increases, average fixed cost gets smaller and smaller
Indicate whether the statement is true or false
The crowding out effect of expansionary fiscal policy when the money supply is not increased is confirmed by
A) the Keynesian econometric models only. B) the Monetarist models only. C) both the monetarist and Keynesian econometric models. D) neither the Monetarist nor the Keynesian econometric models.