When tax revenues minus outlays is
i. positive, the government has a budget surplus.
ii. negative, the government has a budget deficit.
iii. zero, the government has a balanced budget.
A) iii only
B) ii and iii only
C) i and ii only
D) i only
E) i, ii, and iii
E
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Sticky wages cause the:
A. short-run aggregate supply curve to slope upward. B. short-run aggregate supply curve to slope downward. C. long-run aggregate supply curve to slope upward. D. long-run aggregate supply curve to slope downward.
Answer the following statements true (T) or false (F)
1. When U.S. citizens travel on United Airlines to Japan, this constitutes a debit in the U.S. balance of payments. 2. The financial account includes income earned on investments made in prior years. 3. When a U.S. citizen buys goods from a foreign merchant, the goods are usually paid for by having the U.S. citizen send a personal check or dollars directly to the exporter. 4. Although prices in the United States and France may be stable, changes in the exchange rate between dollars and euros can make the actual cost of trade more expensive for one or the other. 5. As the price of foreign exchange increases in terms of the U.S. dollar, U.S. products become cheaper for foreigners to buy.