"Similar to imports, U.S. exports depend on the level of U.S. real GDP so that if real GDP increases, U.S. exports increase." Explain whether the previous sentence is correct or incorrect
What will be an ideal response?
The sentence is incorrect along two dimensions. First, U.S., exports do not depend on U.S. real GDP. Indeed, U.S. exports are part of autonomous spending. Second, because U.S. exports do not depend on U.S. real GDP, they definitely do not increase when U.S. real GDP increases.
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Which of the following is a fiscal policy that would increase aggregate demand in the Keynesian model?
a) a decrease in personal income taxes b) a decrease in government spending c) an increase in corporate income taxes d) a purchase of government bonds by the federal reserve e) a sale of government bonds by the federal reserve
In 2000, Congress eliminated the earnings test for those ages 62 and up who still work
Indicate whether the statement is true or false