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Author Question: An increase in a nation's trade deficit occurs when that nation's exports rise and/or its imports ... (Read 89 times)

clippers!

  • Hero Member
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on: Jun 30, 2018
An increase in a nation's trade deficit occurs when that nation's exports rise and/or its imports fall.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Within the Keynesian aggregate expenditure-output model, if an economy operates below full employment:
 a. a reduction in wage rates and resource prices will soon restore full-employment equilibrium.
  b. a reduction in the real interest rate will soon restore full-employment equilibrium.
  c. an increase in the real interest rate will soon restore full-employment equilibrium.
  d. the economy may remain below full employment unless aggregate expenditures increase.


soda0602

  • Sr. Member
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Reply #1 on: Jun 30, 2018
Answer to Question 1

False

Answer to Question 2

d


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