If exports rise and imports fall, then:
A. GDP will increase.
B. GDP will decrease.
C. GDP may remain unchanged.
D. net exports will fall.
Answer: A
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Along a straight-line demand curve, why does the price elasticity of demand grow steadily smaller as we move from left to right?
What will be an ideal response?
e real interest rate is 4 percent a year. When the expected inflation rate is zero, the nominal interest rate is approximately ________ percent a year; and when the expected inflation rate is 2 percent a year, the nominal interest rate is approximately ________ percent a year.
What will be an ideal response?
Mike and Tom debone chicken breasts for Ted's Chicken Co. Mike is new and can only debone 60 chicken breasts per hour, while Tom's experience allows him to debone 120 chicken breasts per hour. Both Mike and Tom work 40 hours per week. Their average hourly productivity as a team is ________ chicken breasts.
A. 90 B. 60 C. 100 D. 75
In economic terms, tariffs are preferred to quotas because
A) domestic manufacturers gain more producer surplus. B) there is less loss of consumer surplus. C) quotas create a greater production inefficiency. D) given the way quotas are usually administered, tariffs cause a smaller net national welfare loss.