Why do foreigners export goods and services to buyers in the United States?
What will be an ideal response?
They want to acquire dollars so they can purchase things from Americans.
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A firm realizes that the market price has fallen below its average total costs, and it is now earning a loss. What is the best action for the firm to take in the short run?
A. Stay open if price is greater than average variable costs. B. Shut down immediately and pay fixed costs only. C. Stay open if total revenue is greater than fixed costs. D. Shut down if price is greater than average variable costs.
The effect of government spending or tax cuts on national income is measured by the:
A. multiplier. B. output gap. C. aggregator. D. tax rate.
If monetary policy is unchanged, the outstanding national debt will increase whenever
A. government tax receipts exceed government spending. B. government spending exceeds government tax receipts. C. Social Security tax receipts exceed Social Security benefit payments. D. there is a surplus in the federal budget.
The position of the long-run Phillips curve is determined by
A. the quantity of money B. the natural unemployment rate C. the inflation rate D. the expected inflation rate.