MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 10, Problem 6SQ
To determine
The cause of the net export effect.
Expert Solution & Answer
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Students have asked these similar questions
All of these are the positive effects of high net exports, except ______.
a.
Lower price levels
b.
Higher gross domestic product
c.
Higher exchange rates
d.
Higher aggregate demand
A rise in net exports shifts the aggregate
a.
supply curve inward.
b.
supply curve outward.
c.
demand curve inward.
d.
demand curve outward.
. The US consumer expenditure in durable goods decreased by 12%.
In the US, the prices of oil quadrupled.
In the UK, The US dollar appreciated by 12%.
China is an important US trade partner. China's income quadrupled in the past 10 years, increasing
the demand of many US products. At the same time, the Dow Jones Industrial Average (DJIA)
increased by 12.5% over the past two quarters. The effect of these events on the US economy is:
(show the final effects on your graph).
The expenditure of durable goods in the US decreased by 14% in 2018. At the same time, minimum
wage increased from $7.25 to $9 per hour, increasing production costs in the manufacturing industry
and throughout several other industries.
Chapter 10 Solutions
MACROECONOMICS FOR TODAY
Ch. 10.7 - Prob. 1YTECh. 10.A - Prob. 1SQPCh. 10.A - Prob. 2SQPCh. 10.A - Prob. 3SQPCh. 10.A - Prob. 4SQPCh. 10.A - Prob. 5SQPCh. 10.A - Prob. 6SQPCh. 10.A - Prob. 1SQCh. 10.A - Prob. 2SQCh. 10.A - Prob. 3SQ
Ch. 10.A - Prob. 4SQCh. 10.A - Prob. 5SQCh. 10.A - Prob. 6SQCh. 10.A - Prob. 7SQCh. 10.A - Prob. 8SQCh. 10.A - Prob. 9SQCh. 10.A - Prob. 10SQCh. 10.A - Prob. 11SQCh. 10.A - Prob. 12SQCh. 10.A - Prob. 13SQCh. 10.A - Prob. 14SQCh. 10.A - Prob. 15SQCh. 10.A - Prob. 16SQCh. 10.A - Prob. 17SQCh. 10.A - Prob. 18SQCh. 10.A - Prob. 19SQCh. 10.A - Prob. 20SQCh. 10 - Prob. 1SQPCh. 10 - Prob. 2SQPCh. 10 - Prob. 3SQPCh. 10 - Prob. 4SQPCh. 10 - Prob. 5SQPCh. 10 - Prob. 6SQPCh. 10 - Prob. 7SQPCh. 10 - Prob. 8SQPCh. 10 - Prob. 9SQPCh. 10 - Prob. 10SQPCh. 10 - Prob. 11SQPCh. 10 - Prob. 1SQCh. 10 - Prob. 2SQCh. 10 - Prob. 3SQCh. 10 - Prob. 4SQCh. 10 - Prob. 5SQCh. 10 - Prob. 6SQCh. 10 - Prob. 7SQCh. 10 - Prob. 8SQCh. 10 - Prob. 9SQCh. 10 - Prob. 10SQCh. 10 - Prob. 11SQCh. 10 - Prob. 12SQCh. 10 - Prob. 13SQCh. 10 - Prob. 14SQCh. 10 - Prob. 15SQCh. 10 - Prob. 16SQCh. 10 - Prob. 17SQCh. 10 - Prob. 18SQCh. 10 - Prob. 19SQCh. 10 - Prob. 20SQ
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Similar questions
- what happen exports when price level increase? Describe in paragrapharrow_forwardwhat happen imports when price level increase ? Describe and show in grapharrow_forwardIf US exports increased and imports remained constant, this would... O No change in GDP Decrease GDP Increase Net Exports Increase Government Purchasesarrow_forward
- Net exports will increase if: Select one: O a. African demands for agricultural equipment fall. Ob. exports of goods decline. Oc. imports of goods rise O d. Russia has a bumper crop of wheat. O . imports fall.arrow_forwardIf Ford sells 200 Explorers for a total of $400,000 to Germany, while the United States imports 100 BMWS for a total of $500,000 from Germany, a. U.S. net exports is positive. O b. Germany GDP decreases. U.S. GDP increases because it sells more Explorers. d. U.S. GDP decreases because net exports are negative.arrow_forwardIf the government spending increases, will net exports (X-M) increase?arrow_forward
- Two variables that affect the slope of the aggregate demand curve are Select one a. tax rates and interest rates. b. government purchases and real taxes. c exchange rates and income rates. d. government purchases and interest rates.arrow_forwardIf a consumer purchases a foreign-produced hair dryer at a department store, the value of the hair dryer is: a. included in both consumer purchases and exports. b. added to capital investment in equipment but then subtracted from consumer purchases. c. included in consumer purchases but then subtracted as part of imports. d. added to imports but then subtracted as part of exports. Please explain your answerarrow_forwardwhat happen imports when price level increase? Describe in paragrapharrow_forward
- What is the relative importance of Net Export (NX) (Net Export = spending on exports (X) - imports (M)) in aggreagte demand and some factors that affect it?arrow_forwardQuestion 21 As the price level rises, a. The currency depreciates, so net exports fall. b. The currency depreciates, so net exports rise. c. The currency appreciates, so net exports fall. O d. The currency appreciates, so net exports rise.arrow_forwardTrue or False: Aggregate demand (AD) represents the total amount of goods and services that households, firms, the government, and foreigners are willing to buy at various price levels. A. True B. Falsearrow_forward
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