Country X exports 10 million tonnes of wheat to Country Y. Which of the following will happen in this case?
A) Country X's GNP will decrease. B) Country Y's GNP will increase.
C) Country Y's GDP will increase. D) Country X's GDP will increase.
D
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Explain the logic of the multiplier effect
What will be an ideal response?
The U.S. economy of the mid 1980s through 2007 is typically referred to as ________
A) "The Great Depression" B) "The Great Inflation" C) "The Great Moderation" D) all of the above E) none of the above
In a traditional economy, decisions about what to produce, how to produce, and who should get society's output are made by
a. the market b. the government c. repeating what was done in the past d. business firms e. nonprofit firms
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real GDP and reserves account in the context of the Three-Sector-Model? a. Real GDP rises and reserves account becomes more negative (or less positive)
b. Real GDP falls and reserves account remains the same. c. Real GDP and reserves account remain the same. d. Real GDP rises and reserves account remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.