Author Question: Suppose there is a reduction in foreign output (Y). This reduction in Y will cause which of the ... (Read 82 times)

Yi-Chen · **on:** Jun 30, 2018

Suppose there is a reduction in foreign output (Y). This reduction in Y will cause which of the following in the domestic country?

A) a reduction in output
B) a reduction in consumption
C) a reduction in net exports
D) all of the above
E) none of the above

Question 2

A number of factors are believed to have caused changes in the natural rate of unemployment in the United States during the 1990s. Briefly comment on each of these factors.

What will be an ideal response?

johnpizzaz · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

D

Answer to Question 2

There are a number of candidates here: decrease in monopoly power, decreasing role of unions, aging U.S. population, increased prison population, increased number of workers on disability, and unexpectedly high rate of productivity growth.