A country that is running a current account deficit will have:
a. zero net exports.
b. zero investments.
c. negative net investments.
d. positive net exports.
e. negative net exports.
e
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When the dollar appreciates, the prices of imported inputs
A. fall and aggregate supply shifts outward. B. fall and aggregate supply shifts inward. C. rise and aggregate supply shifts outward. D. rise and aggregate supply shifts inward.
The expenditures or output approach to GDP measures it by summing up ________.
A. the total spending for consumption, investment, net exports, and government purchases B. compensation of employees, rents, interest, dividends, corporate profits, proprietors' income, and indirect business taxes and subtracting the consumption of fixed capital C. compensation of employees, rents, interest, dividends, undistributed corporate profits, proprietors' income, indirect business taxes paid, consumption of fixed capital, and net foreign factor income earned in the United States D. the total spending for consumption and government purchases but subtracting public and private transfer payments
How do taxes work to reduce a negative externality? Explain in detail
What will be an ideal response?
If a macroeconomic model consists of upward-sloping short-run aggregate supply and downward-sloping aggregate demand, can it possibly generate a constant real GDP with no business cycles over time?
A) No, only a vertical short-run aggregate supply curve can produce that result. B) No, only a horizontal short-run aggregate supply curve can produce that result. C) Yes, but the short-run aggregate supply curve must never shift. D) Yes, if the aggregate demand and short-run aggregate supply curves shift in perfect unison.