In a two-period model with production, a temporary increase in domestic government spending
A) increases domestic output and increases the current account surplus.
B) increases domestic output and decreases the current account surplus.
C) decreases domestic output and increases the current account surplus.
D) decreases domestic output and decreases the current account surplus.
B
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The Ceteris paribus assumption is important when building economic models
a. True b. False Indicate whether the statement is true or false
When the firm is able to perfectly price discriminate, each unit is sold at its: a. peak load price
b. reservation price. c. cost price. d. market price.
What does the upper half of the diagram represent—the part marked 1?
a. the product market b. the factor market c. the government flow of resources d. the flow of income
Which of the following is an injection into the economy?
a) Investment b) Savings c) Taxation d) Import spending