In a two-period model with production, a temporary increase in domestic government spending

A) increases domestic output and increases the current account surplus.
B) increases domestic output and decreases the current account surplus.
C) decreases domestic output and increases the current account surplus.
D) decreases domestic output and decreases the current account surplus.

B

Economics

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Long term contracts for inputs can lead to the slow adjustment of input prices in response to changes in aggregate demand

a. True b. False Indicate whether the statement is true or false

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Which of the following countries cannot use monetary expansion in order to reduce youth unemployment?

a. South Africa b. Spain c. India d. Greece

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