A trade surplus results when the world supply curve is below the domestic economy's price level.
Answer the following statement true (T) or false (F)
False
A trade deficit is created when the world supply curve is below the domestic economy's price level and this has been the case in the United States for the past 20 years.
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An increase in marginal cost that remains within the gap of the marginal revenue curve of a kinked demand oligopolist will:
a. keep price and output the same. b. raise price and decrease output. c. lower price and increase output. d. raise price and raise output. e. lower price and lower output.
If a country has Y > C + I + G, then it has
a. positive net capital outflow and positive net exports. b. positive net capital outflow and negative net exports. c. negative net capital outflow and positive net exports. d. negative net capital outflow and negative net exports.