If a country has Y > C + I + G, then
a. S > I and it has a trade surplus.
b. S > I and it has a trade deficit.
c. S < I and it has a trade surplus.
d. S < I and it has a trade deficit.
a
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The policy actions by the Fed that would cause the money supply to decrease is
Suppose that Australia has fully employed all of its resources. This situation means that Australia
A) is experiencing zero unemployment. B) has a positive Lucas Wedge. C) has a negative Okun Ga D) is operating at its potential GDP
If the Federal Reserve conducts an open market sale, the
A) interest rate will decrease. B) interest rate will increase. C) interest rate will not change. D) money supply is increased.
The long-run Phillips curve shows the relationship between ________ and ________ when the economy is at full employment
A) the inflation rate; the nominal interest rate B) the unemployment rate; real GDP C) potential GDP; the natural unemployment rate D) the inflation rate; the unemployment rate E) the natural inflation rate; the unemployment rate