Which of the following statements is TRUE about the historical relationship between the trade deficits and government budget deficits?
A. There is a positive relationship between trade deficits and budget deficits.
B. There is a negative relationship between trade deficits and budget deficits.
C. There is no relationship between trade deficits and budget deficits.
D. A relationship exists only when there is a balanced budget.
Answer: A
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If aggregate expenditures are less than real GDP, then:
a. both inventories and real GDP will decline. b. inventories will decline but real GDP will increase. c. inventories will increase and real GDP will decline. d. both inventories and real GDP will increase. e. inventories will increase but real GDP will remain unchanged.
A natural disaster, such as the 2011 Japanese earthquake and tsunami, shifts the ___________ curve _____________________. According to economists who believe that the economy is self-regulating, the result will be that the economy _____________be able to find its way back to Natural Real GDP without government intervention
A) SRAS; rightward; will B) SRAS; leftward; will not C) AD; leftward; will not D) SRAS; leftward; will E) AD; leftward; will
If no resources had a comparative advantage in the production of any good, the production possibility curve would be:
A. bowed inward. B. a downward-sloping straight line. C. a horizontal line. D. bowed outward.
The supply curve shows the relationship between:
A. Price and quantity supplied B. Production costs and the amount demanded C. Total business revenues and quantity supplied D. Physical inputs of resources and the resulting units of output