A good way to view macroeconomic equilibrium is:
a. Water at rest in a tub.
b. Two opposing forces, like water flowing into and out of a tub but the level remaining constant.
c. A state of complete rest, where an economy comes to a complete halt for a brief period.
d. A state of rapid change, but one where the adjustment from one level to another is so quick that the shifts are seamless to most observers.
e. Where the supply and demand for economic activity equals the supply and demand for political activity.
Question 2
Which of the following transactions is not a source of funds for Country A?
a. Exports from Country A.
b. Increases in Country A's central bank reserve assets.
c. Dividends Country A receives from foreign nations.
d. Country A's borrowing from foreign banks.
e. Aid Country A receives from the rest of the world.
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