ollowing would definitely cause a decrease in the price level for the U.S.? a transition from peace to war and a decrease in productivity an increase in interest rates and a good supply shock involving electricity an increase in wages and an appreciation of the U.S. dollar an expectation by business owners of worse business conditions and an increase in wages an increase in the cost of oil and an increase in tax rates

National Saving - Investment = X - IM A country whose National Saving is greater than its Investment will experience a Trade deficit (IM > X) Balanced trade (IM – X) = 0 O Trade surplus (X > IM)

Which of the following are myths about the U.S. economy? Check all that apply.   A. The United States is a relatively closed economy.   B. Chinese imports account for less than 20% of all imports into the United States.   C. Federal government jobs have grown rapidly over the past few decades.   D. Business profits account for roughly one-third of the price Americans pay for typical goods and services.

If imports exceed exports, as in recent years, then __________ exists.   a trade surplus a trade deficit a trade imbalance trade disequilibrium

What are the factors affecting the internal and external balance of the economy of a country? Why do countries try and achieve this internal and external balance?

If the federal government is running a surplus,     the surplus becomes a source of funds for the economy   private savings will decrease   the current account must be negative   taxes must fall

Assume Morocco is currently operating with an unemployment rate six percent above its natural rate of unemployment. Draw a correctly labeled graph of the long-run aggregate supply, short-run aggregate supply, and aggregate demand curves. Label the equilibrium price level PL1 and the equilibrium real output Y1. Label the full-employment level of output YF. Where on a production possibilities curve representing full employment in Morocco would current output be—on, outside, or inside the PPC? What can be assumed about inflation based on the information above? Assume that the output gap is estimated to be $156 billion and the government decides to take action. If the marginal propensity to consume is 0.75, by how much would it need to change government spending to close the gap? Show your work. If instead, government chose to use the income tax to close the output gap rather than changes in spending, calculate the change in tax revenue the government would need to close the gap.…

Country A has a natural climate that is perfect for growing strawberries - long sunny seasons and plenty of rich, well drained soil. Country A also has a big labor force with agriculture knowledge and can produce 80,000 baskets of strawberries in one growing season.   By contrast, Country B’s climate is less well-appointed for strawberries - a shorter summer season with large areas of red clay. They also have a smaller population trained in agriculture. Country B can only produce 30,0000 baskets of strawberries in one growing season.   In this scenario and with this information, Country A has Group of answer choices Absolute advantage for producing strawberries Comparative advantage for producing strawberries The lowest synthetic advantage for producing strawberries Elastic advantage for producing strawberries

NEWS WIRE NORTH KOREA'S ROCKETS DEEPEN FOOD CRISIS   North Korea's Rocket Launches Cost $1.3 Billion   North Korea's rocket program is costly. In December 2012 North Korea successfully launched a long-range rocket carrying a satellite into space. That feat cost $300 million. The entire cost of the rocket program last year - including the failed launch in April - totaled about $1.3 billion according to estimates by South Korea experts. With that much money North Korea could have purchased 4.6 million tons of corn - enough to feed its population for 4-5 years. North Korea's ambitious nuclear program costs nearly triple that amount. The burden of North Korea's military program is evident in widespread poverty and periodic starvation.   Source: News accounts of December 2012 - January 2013.     According to the News Wire, what is the opportunity cost of North Korea's rocket program in terms of corn for North Korea's 25 million people?           million tons of corn

The following graph shows the market for euros in terms of dollars. The market is initially in equilibrium at $1.00 per euro and 4 billion euros. Suppose an economic downturn in the United States leads to a drop in American incomes, causing imports from Europe to decline. On the following graph, show the effect in the market for euros of an economic downturn in the United States that leads to a drop in European incomes. DOLLAR PRICE OF EUROS 2.00 1.75 1.50 1.25 1.00 0.75 0.50 0.25 0 0 1 Supply of Euros D₂ D₁ 2 3 4 5 6 QUANTITY OF EUROS (Billions of euros) 7 8 Under a system of flexible exchange rates, the dollar will depreciate $1.25 per euro. Sell dollars for euros in the foreign exchange market. Lower interest rates by way of monetary policy. Demand for Euros Subsidize the production of certain U.S. exports to Europe. Supply of Euros ? Now suppose that the United States maintains a fixed exchange rate of $1.00 per euro. Which of the following U.S. government policies would keep the…