The connection between domestic saving and investment to the trade balance explains why economists view the balance of trade as a fundamentally __________________ phenomenon.
a. microeconomic
b. positive
c. negative
d. macroeconomic
d. macroeconomic
You might also like to view...
According to the real-business-cycle perspective
A) the economy cannot be stabilized by policy activism. B) the Phillips curve is very important. C) passive policy making is important. D) active policy making is important.
All economic questions arise from the fact that resources are unlimited
Indicate whether the statement is true or false
In Figure 9.6, if full employment occurs at QC, then aggregate demand is
A. Too small, causing cyclical unemployment. B. Too small, causing demand-pull inflation. C. Too great, causing cyclical unemployment. D. Just right.
The GDP deflator provides a measure of which of the following?
A) the ratio of GDP to the size of the population B) the ratio of GDP to the number of workers employed C) the ratio of nominal GDP to real GDP D) the price of a typical consumer's basket of goods E) real GDP divided by the aggregate price level