Apple is an American company, but its iPhones are assembled in China. The sale of each iPhone then is counted in US GDP as:
A. consumption.
B. investment.
C. an import.
D. an export.
C. an import.
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Fiscal policy under the Reagan administration was intended to: a. stimulate the economy by decreasing taxes in order to increase consumption
b. increase tax revenues by increasing the tax rate. c. balance the budget by increasing defense spending and increasing taxes. d. stimulate the economy by decreasing taxes in order to increase aggregate supply. e. stimulate the economy by increasing government spending in order to increase aggregate supply.
Deregulation has led to higher prices.
Answer the following statement true (T) or false (F)
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
Increased opportunities for trade increase production by
A. Protecting countries from competition. B. Improving efficiency through specialization. C. Encouraging countries to be self-sufficient. D. Shifting the production possibilities curve outward.