Refer to Figure 27-1. An increase in taxes would be depicted as a movement from ________, using the static AD-AS model in the figure above

Whenever the balance on the current account (CA) is negative, it indicates that:

a) the trade deficit b) total spending (GNE) in the economy is greater than income (GNDI) and is financed by barrowing from abroad c) domestic investment is less than national savings d) income (GNDI) is greater than total spending (GNE) in the economy and the country is a net lender to the rest of the world

Nominal GDP =________ where the price level is the ________

A) Price level ÷ Real GDP; GDP deflator B) Price level × Real GDP; CPI C) Price level ÷ Real GDP; CPI D) Price level × Real GDP; GDP deflator E) none of the above