In the diagram above, which of the following could cause a movement from point E' to point E?
A. Japanese residents' incomes rise, so they increase their purchases of U.S. goods.
B. The dollar depreciates, inducing Japanese residents to buy more U.S. goods.
C. The dollar depreciates, inducing U.S. residents to buy more Japanese goods.
D. U.S. residents' incomes rise, so they increase their purchases of Japanese goods.
Answer: D
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What condition must be satisfied so that society is producing the efficient mix of output? Why does this condition guarantee efficiency?
What will be an ideal response?
Over 65% of those age 85 or older are female
Indicate whether the statement is true or false
If on-the-job working conditions have improved over time,
a. real GDP will understate the growth rate of real income. b. real GDP will overstate the growth rate of real income. c. the GDP deflator will overestimate inflation. d. real GDP will overstate the growth rate of real income, and the GDP deflator will understate inflation.
Which of the following is likely to happen if the government increases its expenditure?
A) Price level will fall. B) Investment will decrease. C) Unemployment will increase. D) Consumption will increase.