In the figure above, the ________ gap is one trillion dollars. To close the gap, the government can ________ government expenditure and/or ________ taxes

According to the text, which of the following factors contributed to the increased labor force participation rate of women during the postwar period?

a. rising real wages b. an increase in the years of schooling completed by women c. declining fertility rates d. the growth of the service sector e. All of the above

Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?

a. The GDP Price Index falls, and current international transactions become more negative (or less positive). b. The GDP Price Index rises, and current international transactions become more negative (or less positive). c. The GDP Price Index and current international transactions remain the same. d. The GDP Price Index rises, and current international transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.