The U.S. buys $500 billion of goods and $250 billion of services from foreign countries. Foreign countries buy $250 billion of goods and $300 billion of services from the U.S. What is net exports?
-$200 billion
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Fiscal policy: a. uses the federal government's powers of spending and taxation to affect employment, the price level, and GDP. b. uses the federal government's control over the money supply and interest rates to affect employment, the price level, and GDP. c. can affect employment and prices, but not the level of GDP
d. can affect employment and the level of GDP, but not the price level. e. is most effective when employed by state governments rather than by the federal government.
Since the U.S. economy expanded rapidly from 1992 to 2000, it must be true that
A. fiscal contraction overwhelmed monetary expansion. B. monetary expansion overwhelmed fiscal contraction. C. monetary expansion exactly offset fiscal contraction. D. monetary contraction overwhelmed fiscal expansion.
Which of the following statements is true of direct to consumer advertising (DTCA)?
a. There is a positive correlation between a drug's price and the amount of DTCA practiced. b. DTCA increases pharmaceutical profits but does little to improve consumer welfare. c. The majority of pharmaceutical spending on advertising is focused on the patient. d. DTCA attracts more patients to consider using the product who might not have known about the drug. e. Pharmaceutical advertising does little to educate patients. Its sole purpose is to promote product use.
When the economy is in long-run equilibrium, there will be
A. cyclical unemployment only. B. cyclical and seasonal unemployment. C. no unemployment. D. frictional and structural unemployment.