Adding globalization and large trade deficits to the standard AS/AD model creates:

A. increased domestic production and consumption.
B. increased domestic production and reduced consumption.
C. reduced domestic production and consumption.
D. decreased domestic production and increased consumption.

Answer: D

Economics

You might also like to view...

Does the short-run Phillips curve have a positive or negative slope? Explain how this slope is derived

What will be an ideal response?

Economics

Government-backed deposit insurance ________

A) protects "good" banks from the misdeeds of "bad" banks B) is intended to encourage banks to pursue high-risk activities C) is an example of prudential regulation D) is an example of government-directed credit

Economics