Considering only its direct effect on income, contractionary fiscal policy tends to:
A. decrease income and imports, raising the trade deficit.
B. decrease income and imports, lowering the trade deficit.
C. increase income and imports, lowering the trade deficit.
D. increase income and imports, raising the trade deficit.
Answer: B
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Which of the following activities increases the demand for union labor?
A) a decrease in the minimum wage B) a decrease in immigration C) an increase in the union wage D) an increased desire by consumers to buy imports
Given an exchange rate of 120 yen = $1, what is the U.S. dollar price of 1 yen?
a. $0.025 b. $0.0083 c. $120 d. $0.0012 e. $1
A technological advance that increases the productivity of all inputs is best illustrated as: a. a movement along the production possibilities curve. b. a flattening of the production possibilities curve
c. an inward shift of the production possibilities curve. d. an outward shift of the production possibilities curve.
The long-run supply curve is upward sloping in a(n)
a. decreasing-cost industry b. increasing-cost industry c. constant-cost industry d. labor-intensive industry e. capital-intensive industry