Suppose we have an economy for which G = 1100, T = 800, S = 230, and I = 230. If I falls to 150, the economy's trade deficit
A) increases from 0 to 80.
B) decreases from 300 to 220.
C) decreases from 0 to -80.
D) decreases from 70 to -10.
E) increases from 0 to 70.
B
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GDP is
A) a perfect measure of the value of production. B) an imperfect measure of the standard of living. C) the only factor that affects our standard of living. D) a perfect measure of the standard of living. E) a measure which includes the value of all newly produced goods and services.
People who are not currently employed, but say they want a job, are counted as unemployed only if they:
a. have previously held a job. b. are actively seeking employment. c. are willing to accept a reasonable offer. d. are between 16 and 65 years of age. e. are willing to accept any offer of employment.
Variables A and B are inversely related. If we plot A on the horizontal axis and B on the vertical axis, the line that connects combinations of A and B in a two-variable diagram is
A) parallel to the horizontal axis. B) downward-sloping (left to right). C) parallel to the vertical axis. D) upward-sloping (left to right). E) a or c
Debt servicing refers to the repayment of principal on the debt.
Answer the following statement true (T) or false (F)