Which of the following statements is correct? Multiple Choice 1. An increase in exports will tend to increase, and an increase in imports will tend to decrease, the equilibrium real GDP. 2. An increase in exports and an increase in imports will both tend to increase the equilibrium real GDP. 3. An increase in exports and an increase in imports will both tend to decrease the equilibrium real GDP. 4. An increase in exports will tend to decrease, and an increase in imports will tend to increase, the equilibrium real GDP.

Which of the following statements is correct? Multiple Choice 1. An increase in exports will tend to increase, and an increase in imports will tend to decrease, the equilibrium real GDP. 2. An increase in exports and an increase in imports will both tend to increase the equilibrium real GDP. 3. An increase in exports and an increase in imports will both tend to decrease the equilibrium real GDP. 4. An increase in exports will tend to decrease, and an increase in imports will tend to increase, the equilibrium real GDP.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.A: The Simple Algebra Of Income Determination And The Multiplier

Problem 1TY

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