Globalization and trade:
A. expands economic potential in a similar fashion to productivity enhancing technological progress.
B. provide an opportunity to reduce inflation permanently.
C. shifts both the short-run and long-run aggregate supply curves to the right.
D. all of the answers provided are correct.
Answer: D
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Refer to the above figure. If real GDP is $4 trillion, then
A) actual investment spending equals $1 trillion as planned investment spending plus unplanned inventory increases equal $1 trillion. B) consumption expenditures are too low. C) unplanned inventories will decrease. D) unplanned inventories will increase.
According to your textbook, efforts to free Sudanese slaves by buying them in the open market actually
A) increased supply of slaves, which lowered slave prices and increased the size of the slave market. B) increased demand for slaves, which increased slave prices and increased the size of the slave market. C) decreased supply of slaves, which increased slave prices and decreased the size of the slave market. D) decreased demand for slaves, which decreased slave prices and decreased the size of the slave market.
In a simple macroeconomic model, only one component of expenditures is allowed to change:
a. investment. b. consumption. c. net exports. d. government spending. e. transfer payments.
An improvement in technology would shift which of the following curve(s)?
a. aggregate demand and short-run aggregate supply b. only the short-run aggregate supply c. only the aggregate demand d. short-run and long-run aggregate supply