Figure36-9
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In Figure 36-9, the C + I + G + (X? IM)1 line is flatter than the C + I + G + (X? IM)0 line because the
A. (X? IM)1 line indicates that net exports decline as GDP rises.
B. (X? IM)1 line indicates that net exports rise as GDP rises.
C. multiplier is greater for the (X? IM)1 line.
D. (X? IM)1 line indicates that tariffs, quotas, and other trade barriers are keeping net exports below their full potential.
Answer: A
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Macroeconomic equilibrium is always good, because:
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A. A decrease in the quantity of capital. B. An increase in the number of participants in the labor force. C. An increase in the quality of capital. D. Crowding out.
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