Author Question: The change in aggregate expenditures resulting from a movement in the domestic price level, which in ... (Read 57 times)

audie · **on:** Jun 30, 2018

The change in aggregate expenditures resulting from a movement in the domestic price level, which in turn changes the price of domestic goods in relation to foreign goods, is known as the:
a. international trade effect.
b. multilateral equilibrium condition.
c. international exchange rate effect.
d. magnified international pricing effect.
e. international deficit effect.

Question 2

An economic theory:
a. should be as detailed as possible in order to model the complexity of an economy.
b. is an abstraction from reality.
c. is only useful if it rests on realistic assumptions.
d. is unrealistic and therefore of dubious usefulness in explaining what occurs in a complex economy.