Total Reserves minus vault cash equals

Suppose a country's net exports equal zero. Which of the following will happen if the volume of exports increases without an increase in the volume of imports?

A) The country will experience a budget deficit. B) The country will experience a trade surplus. C) The country will experience a trade deficit. D) The country will experience a budget surplus.

Natural disasters (such as the 2011 earthquake and tsunami in Japan) are examples of an adverse supply shock, which result in the SRAS curve shifting leftward

Indicate whether the statement is true or false