Net exports usually ________ when the U.S. economy is in a recession and ________ when the U.S. economy is expanding.
A) increase; increase B) decrease; decrease C) decrease; increase D) increase; decrease
Ques. 2In an open economy, the relationship between GDP (Y) and expenditures is Y = C + I + G.
Indicate whether the statement is true or false
Ques. 3Refer to Figure 16-6. With a two-part pricing scheme - a monopoly price for classes and a one-time membership fee - what is the amount of producer surplus Sensei will earn?
A) an amount equal to the area A + B + C + D + H + G
B) an amount equal to the area A + B + C + D
C) an amount equal to the area E + F
D) an amount equal to the area A + C + H
Ques. 4Contractionary monetary policy on the part of the Fed results in
A) an increase in the money supply, a decrease in interest rates, and an increase in GDP.
B) a decrease in the money supply, an increase in interest rates, and a decrease in GDP.
C) a decrease in the money supply, a decrease in interest rates, and a decrease in GDP.
D) an increase in the money supply, an increase in interest rates, and an increase in GDP.
Ques. 5Which of the following countries actually experienced negative economic growth from 1960 to 2011?
A) Niger B) Malaysia C) Singapore D) Israel
Ques. 6At the point where actual inflation is equal to expected inflation
A) the unemployment rate is zero.
B) there is no short-run Phillips curve, as this situation only occurs in the long run.
C) the short-run Phillips curve intersects the long-run Phillips curve.
D) the short-run Phillips curve is the same as the long-run Phillips curve.
Ques. 7U.S. net export spending falls when
A) the inflation rate is lower in the United States relative to other countries.
B) the growth rate of U.S. GDP is faster than the growth rate of GDP in other countries.
C) the value of the U.S. dollar decreases relative to other currencies.
D) the price level in the United States falls relative to the price level in other countries.
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