Suppose the rest of the world experiences a recession that causes a reduction in foreign income (Y). From the domestic economy's perspective, this reduction in foreign income will cause which of the following as the domestic economy adjusts to the drop in Y?
A) a reduction in income and a reduction in imports
B) a reduction in imports and an increase in net exports
C) the NX line to shift up
D) an ambiguous effect on net exports
Question 2
For this question, assume that the economy is initially operating at the natural level of output. An increase in unemployment benefits will cause
A) an increase in the real wage in the medium run.
B) a reduction in the real wage in the medium run.
C) no change in the real wage in the medium run.
D) ambiguous effects on the real wage in the medium run.
Thinking about Past Experiences While Asleep
The Distribution of the World's Land and Population
The United States is the most racially– ethnically diverse society in the world. This can be our ...
Position the forearm for ice massage of the tendons around the elbow. Rest the forearm comfortably ...
Household Income in the United States by Quintiles, 2009
The executive legislative "struggle" over foreign policy