Which of the following would decrease net exports in the United States?
A) A Mexican citizen purchases 100 shares of stock in IBM.
B) The U.S. government donates 25 million to Mexico to help victims of a hurricane in Mexico.
C) An American party planner purchases 350 piatas from Mexico.
D) The government of Mexico purchases 2,000 Dell laptop computers from the United States.
Ques. 2A decrease in aggregate demand causes a decrease in ________ only in the short run, but causes a decrease in ________ in both the short run and the long run.
A) the price level; real GDP B) the price level; the price level
C) real GDP; real GDP D) real GDP; the price level
Ques. 3Robert Lucas argues that there are ________ returns to human capital, and these productivity increases are not completely captured by individuals as they decide how much education to purchase.
As a result, the market produces ________ education and training.
A) increasing; too little B) increasing; too much
C) decreasing; too little D) decreasing; too much
Ques. 4Refer to Table 19-28. Based on the table above, what is national income for this economy?
A) 1,950 billion B) 2,250 billion C) 2,950 billion D) 3,550 billion
Ques. 5If unemployment persists for a long period of time, the natural rate of unemployment rises.
Indicate whether the statement is true or false
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