Author Question: Which of the following is true when a country's trade position is balanced (i.e., NX = 0)? A) ... (Read 65 times)

sc00by25 · **on:** Jun 30, 2018

Which of the following is true when a country's trade position is balanced (i.e., NX = 0)?

A) Demand for domestic goods is equal to the domestic demand for goods.
B) Demand for domestic goods is greater than the domestic demand for goods.
C) Demand for domestic goods is less than the domestic demand for goods.
D) Neither a budget surplus nor deficit exists (i.e., G - T = 0).

Question 2

Which of the following is one possible explanation for the change in the natural rate of unemployment in the United States during the 1970s?

A) contractionary fiscal policy
B) an increase in the proportion of labor contracts that were indexed
C) contractionary monetary policy
D) all of the above
E) none of the above