Which of the following is true when a county is experiencing a ...

[humphriesbr@me.com]

Which of the following is true when a county is experiencing a trade deficit (NX < 0)?
 
  A) Demand for domestic goods is equal to the domestic demand for goods.
  B) Demand for domestic goods is greater than the domestic demand for goods.
  C) Demand for domestic goods is less than the domestic demand for goods.
  D) A budget deficit exists.

Question 2

Suppose policy makers overestimate the natural rate of unemployment. In situations like these, policy makers will likely implement policies that result in
 
  A) less unemployment than necessary.
  B) an unemployment rate that is too low.
  C) a lower inflation rate than necessary.
  D) a steadily increasing inflation rate.
  E) overly expansionary monetary and fiscal policy.

[fwbard]

Answer to Question 1

C

Answer to Question 2

C

[humphriesbr@me.com]

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