For this question, assume that equilibrium output is determined in the ZZ-Y diagram. Further assume that policy makers' goals are (1 ) to achieve balanced trade (i.e., NX = 0); and (2 ) to achieve a target level of output, say YT. Now, suppose that the initial level of equilibrium output is equal to YT (i.e., Y = YT) and that a trade deficit exists at this initial level of output. Which of the following policy actions would most likely enable the policy makers to achieve their two goals simultaneously?
A) a reduction in government spending
B) convince the country's trading partners to pursue policies that will cause an increase in foreign income (Y)
C) a reduction in the real exchange rate
D) a reduction in taxes
E) a simultaneous increase in government spending and reduction in the real exchange rate
F) none of the above
Question 2
As fiscal consolidation takes place, the central bank should
A) decrease the policy rate.
B) increase the policy rate.
C) increase inflation rate.
D) decrease money supply.
Block Diagram of a Dual-stage Pressure System for Dual-Stage Pressure Production of Nitric Acid Seme
Operations Management question:
Possible Sources of Differences in Output per Worker
Use the graph of the function f(x) to answer each question.
economic question
CHEM QUESTION