Olympus is a small open economy. Which of the following statements is/are correct? 1. If the government is running a budget deficit, there will also be a deficit on the trade balance 11. If Olympus is operating at long-run equilibrium and net exports are positive, then Olympus' output must be greater than the amount it a spending on consumption, Investment and government expenditure Select one: Ⓒa. Options I and II are correct Ob. Neither Option I nor Option Il is correct Oc. Option I is correct, but Option II is incorrect Od. Option I is incorrect, but Option II is correct.
Olympus is a small open economy. Which of the following statements is/are correct? 1. If the government is running a budget deficit, there will also be a deficit on the trade balance 11. If Olympus is operating at long-run equilibrium and net exports are positive, then Olympus' output must be greater than the amount it a spending on consumption, Investment and government expenditure Select one: Ⓒa. Options I and II are correct Ob. Neither Option I nor Option Il is correct Oc. Option I is correct, but Option II is incorrect Od. Option I is incorrect, but Option II is correct.
Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: Open-Economy Macroeconomics: Basic Concepts
Section: Chapter Questions
Problem 3QCMC
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