Between 2015 and 2016, if an economy's exports rise by $8 billion and its imports fall by $8 billion, by how much will GDP change between the two years, all else equal?
A) The increase in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP.
B) Net exports will decrease GDP by $8 billion.
C) Net exports will increase GDP by $8 billion.
D) Net exports will increase GDP by $16 billion.
D
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What is meant by the marginal rate of transformation?
What will be an ideal response?
The efficient number of gifts that a gift-giver wants to give is the number at which the marginal benefits of giving a gift are__________________the marginal costs of giving a gift
A) greater than B) less than C) equal to D) less than or equal to
Brazil should
A. specialize in the production of coffee and import hot dogs from Colombia.
B. specialize in the production of hot dogs and import coffee from Colombia.
C. import both coffee and hot dogs from Colombia.
D. not engage in trade with Colombia, but produce both coffee and hot dogs domestically.
The unemployment rate will decrease when
A. the average workweek falls from 40 to 39 hours. B. the duration of unemployment increases. C. people get discouraged and quit looking for work. D. the age of the labor force increases.