A decrease in the real exchange rate will tend to ________ exports and to ________ imports.
A. increase; decrease
B. decrease; decrease
C. decrease; increase
D. increase; increase
Answer: A
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The gap between potential GDP and real GDP had been as large as 7 percent during the worst of the 2007-2009 recession. By 2015, the gap
A) was positive, with real GDP exceeding potential GDP. B) had been eliminated. C) was still nearly 3 percent. D) remained at 7 percent.
In a __________ plan, employees may choose __________
A) defined benefit; the assets they invest in B) defined benefit; the benefits received during retirement C) defined contribution; the assets they invest in D) defined contribution; the benefits received during retirement
The inner loop of the circular-flow diagram represents the flows of inputs and outputs. Which of the following does not appear on the inner loop?
a. wages b. land c. capital d. goods and services sold
If price (P) and quantity (Q) are directly related, this means that:
A. a change in Q will alter P, but a change in P will not alter Q. B. if P increases, Q will decrease. C. if P increases, Q will also increase. D. an increase in P will cause Q to change, but the direction in which Q changes cannot be predicted.