An increase in government spending will force an appreciation of the dollar, which causes net exports to fall
Indicate whether the statement is true or false
TRUE
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In a market system, the mechanism that coordinates economic activity is
A. the profit motive. B. the price system. C. input-output analysis. D. program trading in the stock market.
In what geographic areas would a market-oriented system that remains closer to the command economy end of the spectrum most likely be found?
a. parts of Asia, Africa, and South America b. Cuba and North Korea c. Europe and the United States d. China and Russia
GDP as predicted by the classical model is
a. lower than the actual level of GDP b. higher than the actual level of GDP c. smoother and steadier than actual GDP d. more unstable over time than actual GDP e. an accurate predictor of actual GDP
What is the relationship between price and marginal revenue for a competitive firm?