Between 2015 and 2016, if an economy's exports rise by $8 billion and its imports fall by $8 billion, by how much will GDP change between the two years, all else equal?
A) The increase in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP.
B) Net exports will decrease GDP by $8 billion.
C) Net exports will increase GDP by $8 billion.
D) Net exports will increase GDP by $16 billion.
D
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Suppose that the European Central Bank conducts a main refinancing sale. Everything else held constant, this would cause the demand for U.S. assets to ________ and the U.S. dollar will ________
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
The prices of most services have risen much faster than inflation in recent years because
a. wages and salaries of service providers have risen much faster than inflation. b. wages and salaries of service providers have risen but their productivity has not. c. the productivity of service providers has risen dramatically. d. the demand for services has risen.