An increase in a nation's trade deficit occurs when that nation's ...

[clippers!]

An increase in a nation's trade deficit occurs when that nation's exports rise and/or its imports fall.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Within the Keynesian aggregate expenditure-output model, if an economy operates below full employment:
 a. a reduction in wage rates and resource prices will soon restore full-employment equilibrium.
  b. a reduction in the real interest rate will soon restore full-employment equilibrium.
  c. an increase in the real interest rate will soon restore full-employment equilibrium.
  d. the economy may remain below full employment unless aggregate expenditures increase.

[soda0602]

Answer to Question 1

False

Answer to Question 2

d