If the U.S. capital and financial account balance has a $30 million surplus and there was no change in official reserves during that year, we know that

A) the United States has a $30 million current account deficit.
B) U.S. official reserves have increased by $30 million.
C) the United States is a net lender.
D) U.S. net foreign lending must equal $30 million.
E) the United States has a $30 million current account surplus.

A

Economics

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Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:

A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.

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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.

A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary

Economics