Absorption refers to
A. the net amount of imports purchased by a country.
B. the total amount of imports purchased by a country.
C. GDP less desired consumption, desired investment, and government purchases.
D. total spending by domestic residents, businesses, and governments.
Answer: D
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Refer to the Article Summary. Assume countries initially enacted protectionist measures against Chinese steel imports. If these protectionist measures were eventually eliminated, then all else equal, the price of steel in those countries would ________ and the quantity of steel demanded in those countries would ________.
A) decrease; decrease B) increase; decrease C) decrease; increase D) increase; increase
The short-run aggregate supply curve shows the _____ relationship between the inflation rate and real growth during the period when prices and wages are _____
Fill in the blank(s) with the appropriate word(s).
According to the Lucas supply function, workers who experience a positive price surprise will work more hours when
A. the income effect dominates the substitution effect. B. there is no income effect from a positive price surprise. C. the substitution effect dominates the income effect. D. there is no substitution effect from a positive price surprise.
What are the effects of the double taxation of dividends?
What will be an ideal response?