Which of the following is true when a country is experiencing a trade surplus (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) A budget surplus exists.
Question 2
Which of the following does not represent a labor market rigidity to which critics refer when discussing unemployment in Europe?
A) generous unemployment insurance
B) restrictive monetary and fiscal policies
C) a high degree of employment protection
D) relatively high minimum wages
E) none of the above
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