Author Question: In a small country, the effect of a given change in government spending A) on output is large and ... (Read 68 times)

neverstopbelieb · **on:** Jun 30, 2018

In a small country, the effect of a given change in government spending

A) on output is large and the effect on the trade balance is small.
B) on output is large and the effect on the trade balance is large.
C) on output is small and the effect on the trade balance is small.
D) on output is small and the effect on the trade balance is large.

Question 2

Okun's law shows that when the unemployment rate is below the natural rate,

A) inflation is higher than expected.
B) inflation is lower than expected.
C) output is below potential.
D) output is above potential.