Someone in Germany has just ordered a U.S. car to be exported to Germany. In the U.S. balance of payments, this purchase is a(n)
A) accounting identity.
B) special draw.
C) surplus item.
D) deficit item.
C
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At long-run macroeconomic equilibrium, ________
A) an inflationary gap exists B) real GDP equals potential GDP C) a recessionary gap exists D) real GDP is less than potential GDP but is as close as it is possible to be
Purchases of inventories by
A) firms are not counted in investment spending. B) firms are also counted in investment spending. C) households are also counted in investment spending. D) households and Firms are also counted in investment spending. E) foreign consumers are counter in investment spending.
Refer to Figure 10.7. A movement from point C to point B could be caused by
A) an increase in consumer confidence accompanied by a decrease in the target interest rate. B) a decrease in consumer confidence accompanied by an increase in the expected rate of inflation. C) a negative demand shock accompanied by an increase in the term structure effect. D) a positive demand shock accompanied by a decrease in the default-risk premium.
What is included in the public statement released by the FOMC following the conclusion of its meeting?
What will be an ideal response?