An increase in domestic output would cause a ________ in net exports and a ________ in the exchange rate
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall
D
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In general, a nation can enjoy a higher standard of living by ________ than by being self-sufficient.
A. specialization and trading B. taxing imported goods C. increasing its versatility D. avoiding trade with other nations
An increase in business tax rates, combined with a decrease in consumer confidence, would have what effect on aggregate demand? a. AD would increase
b. AD would decrease. c. AD would stay the same. d. AD could either increase or decrease, depending on which change was of a greater magnitude.
Governments should not be concerned about fiscal policies that sustain a pattern of high budget deficits and high trade deficits.
Select whether the statement is true or false. A. True B. False
Predicting the future is very difficult to do. Which of the following is not a reason for this difficulty?
a. Economists often use historic trends to predict the future, but these historic trends rarely stay the same. b. Economists often use historic interrelationships to predict the future, but these interrelationship trends rarely stay the same. c. A very broad range and combination of economic variables can influence the economic activity. d. Economists often use major historic shocks (such as energy crises) to predict the future, but these major shocks occur irregularly.