If real GDP exceeds potential GDP, this means that
a. output is below the level produced at the benchmark rate for high employment and high rate of resource utilization.
b. this cannot occur; the economy can never be at a point where real GDP exceeds potential GDP.
c. cyclical output is above what the economy can sustain in the long-run.
d. the economy is expanding.
C
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If the United States receives $200 billion of foreign investment and at the same time invests a total of $160 billion abroad, then the U.S
A) balance of payments must be negative. B) current account must be in surplus. C) official settlements account balance increases by $40 billion. D) capital and financial account balance decreases by $40 billion. E) capital and financial account balance increases by $40 billion.
A good or service or a resource is excludable if
A) it is possible to prevent someone from enjoying its benefits. B) it is not possible to prevent someone from enjoying its benefits. C) its use by one person decreases the quantity available for someone else. D) its use by one person does not decrease the quantity available for someone else.