In the graph shown, an upward shift in the WAS curve:
A. lowers the trade deficit, because domestic producers are more competitive.
B. raises domestic consumption, because domestic producers will produce more.
C. lowers domestic production, because domestic consumption has fallen.
D. raises globalized potential output, because U.S. producers are less competitive.
Answer: A
You might also like to view...
When the U.S. interest rate rises relative to that in other counties, in the foreign exchange market the demand for U.S. dollars ________ and the supply of U.S. dollars ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
In the neoclassical growth model, if two countries are exactly the same but one has a lower permanent budget deficit, we would expect that country to have
a. higher output, a higher capital-to-labor ratio, and higher output growth in the steady state. b. the same output and capital-to-labor ratio, but higher output growth in the steady state. c. higher output, the same capital-to-labor ratio, and the same output growth in the steady state. d. higher output, a higher capital-to-labor ratio, and the same output growth in the steady state.
Refer to the above figure. As more and more firms are able to and actually do enter the industry, the demand curve of each firm and its marginal revenue curve
A) will shift inward until the demand curve is tangent to the average total cost curve. B) will become vertical. C) will become upward sloping. D) None of the above will occur.
In general, the purpose of markets is to facilitate the exchange of goods and services between buyers and sellers
a. True b. False Indicate whether the statement is true or false