Assume a country is open. Given this information, which of the ...

[cdr_15]

Assume a country is open. Given this information, which of the following must occur?
 
  A) demand for domestic goods will be equal to the domestic demand for goods
  B) demand for domestic goods will be greater than the domestic demand for goods
  C) demand for domestic goods will be less than the domestic demand for goods
  D) S + T = I + G
  E) none of the above

Question 2

Why has the U.S. natural rate of unemployment fallen since the early 1990s?
 
  What will be an ideal response?

[Andromeda18]

Answer to Question 1

E

Answer to Question 2

Researchers have offer a number of explanations: Increased globalization and stronger competition between US and foreign firms may have led to a decrease in monopoly power and a decrease in the markup; The nature of the labor market has changed; the aging of the US population; an increase in the prison population and the increase in the number of workers on disability.