According to this Application, as the U.S. economy grew from the early 1990s, U.S. exports also increased as our demand for foreign products promoted growth in foreign countries. This increase in exports would tend to
A) decrease U.S. GDP and reduce unemployment in the short run.
B) decrease U.S. GDP and increase unemployment in the short run.
C) increase U.S. GDP and reduce unemployment in the short run.
D) increase U.S. GDP and increase unemployment in the short run.
Question 2
Figure 4.3 illustrates the demand for tacos. A decrease in price of tacos would bring about a movement from
A) point a to point c. B) point c to point a. C) D2 to D0. D) D0 to D2.
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