Question 1

If an economy's exports are $560 billion and its imports are $730 billion,its net exports are

Accepted Answer

A)  $1,290 billion 
B)  $170 billion 
C)  -$170 billion 
D)  1.30. 
A)  $1,290 billion 
B)  $170 billion 
C)  -$170 billion 
D)  1.30. C

Question 2

In recent years,the Chinese government's actions have had an impact on interest rates in the United States.

Accepted Answer

A) True 
 B)False  True

Question 3

Between 1990 and 2003,college tuition went up 130 percent,which is __________ the increase in the prices of housing,gasoline,and medical care.

Accepted Answer

A)  slightly more than 
B)  less than 
C)  about the same as 
D)  considerably more than 
A)  slightly more than 
B)  less than 
C)  about the same as 
D)  considerably more than D

Question 4

The Cold War

Accepted Answer

A)  hampered globalization because it created a political barrier between countries which reduced the likelihood that those countries would engage in trade with one another. 
B)  enhanced globalization because it helped to encourage countries to engage in trade with one another. 
C)  ended with the building of the Berlin Wall in the early 1960s. 
D)  a and c 
A)  hampered globalization because it created a political barrier between countries which reduced the likelihood that those countries would engage in trade with one another. 
B)  enhanced globalization because it helped to encourage countries to engage in trade with one another. 
C)  ended with the building of the Berlin Wall in the early 1960s. 
D)  a and c

Question 5

A rise in net exports shifts the

Accepted Answer

A)  AD curve leftward. 
B)  AD curve rightward. 
C)  SRAS curve leftward. 
D)  SRAS curve rightward. 
A)  AD curve leftward. 
B)  AD curve rightward. 
C)  SRAS curve leftward. 
D)  SRAS curve rightward.

Question 6

If Japan's Real GDP rises,this tends to _________________ United States exports,shifting the United States AD curve to the __________________.

Accepted Answer

A)  raise; right. 
B)  raise; left. 
C)  lower; right. 
D)  lower; left. 
A)  raise; right. 
B)  raise; left. 
C)  lower; right. 
D)  lower; left.

Question 7

Dollar depreciation raises United States Real GDP when the __________ shift of the AD curve exceeds the _________________ shift of the SRAS curve.

Accepted Answer

A)  rightward; rightward 
B)  rightward; leftward 
C)  leftward; rightward 
D)  leftward; leftward 
A)  rightward; rightward 
B)  rightward; leftward 
C)  leftward; rightward 
D)  leftward; leftward

Question 8

According to J-curve theory,imports initially increase after a country's currency depreciates,but in the long run imports decrease.

Accepted Answer

A) True 
 B)False

Question 9

In the short run following a depreciation of the dollar,the United States may move downward along the J-curve since it is likely that the United States

Accepted Answer

A)  spends more dollars on imports. 
B)  spends fewer dollars on imports. 
C)  sells an increased dollar amount of exports. 
D)  sells a reduced dollar amount of exports. 
A)  spends more dollars on imports. 
B)  spends fewer dollars on imports. 
C)  sells an increased dollar amount of exports. 
D)  sells a reduced dollar amount of exports.

Question 10

Suppose the price level in Germany rises,ceteris paribus. This ________________ United States net exports,ultimately shifting the United States AD curve ____________________.

Accepted Answer

A)  stimulates; rightward 
B)  stimulates; leftward 
C)  depresses; rightward 
D)  depresses; leftward. 
A)  stimulates; rightward 
B)  stimulates; leftward 
C)  depresses; rightward 
D)  depresses; leftward.

Question 11

Globalization

Accepted Answer

A)  is the growing integration of the national economies of the world to such an extent that a single worldwide economy may be emerging. 
B)  is any type of foreign trade. 
C)  is specifically foreign trade between countries that have entered into a formal free trade agreement. 
D)  will necessarily lead to higher unemployment rates in the United States. 
A)  is the growing integration of the national economies of the world to such an extent that a single worldwide economy may be emerging. 
B)  is any type of foreign trade. 
C)  is specifically foreign trade between countries that have entered into a formal free trade agreement. 
D)  will necessarily lead to higher unemployment rates in the United States.

Question 12

Describe three factors that have led to the recent push toward globalization.

Accepted Answer

The three factors cited in the text for

Question 13

The consumer price index (CPI)increased at a slower rate during the period 1990-2004 than the import price index.

Accepted Answer

A) True 
 B)False

Question 14

If Germany's Real GDP rises,this tends to ________________ United States exports,shifting the United States AD curve to the ___________________.

Accepted Answer

A)  raise; right. 
B)  raise; left. 
C)  lower; right. 
D)  lower; left. 
A)  raise; right. 
B)  raise; left. 
C)  lower; right. 
D)  lower; left.

Question 15

Dollar depreciation lowers United States Real GDP when the _____________ shift of the SRAS curve exceeds the __________ shift of the AD curve.

Accepted Answer

A)  rightward; rightward 
B)  rightward; leftward 
C)  leftward; rightward 
D)  leftward; leftward 
A)  rightward; rightward 
B)  rightward; leftward 
C)  leftward; rightward 
D)  leftward; leftward

Question 16

The end of the Cold War is generally marked by the fall of the Berlin Wall in

Accepted Answer

A)  1961. 
B)  1969. 
C)  1979. 
D)  1989. 
E)  1994. 
A)  1961. 
B)  1969. 
C)  1979. 
D)  1989. 
E)  1994.

Question 17

As the dollar depreciates,the dollar price of imported goods _________,ultimately shifting the United States AD curve __________________.

Accepted Answer

A)  rises; rightward 
B)  rises; leftward 
C)  falls; rightward 
D)  falls; leftward 
A)  rises; rightward 
B)  rises; leftward 
C)  falls; rightward 
D)  falls; leftward

Question 18

Describe the impact of contractionary fiscal policy (such as a decrease in government spending)upon Real GDP in both a closed economy and an open economy. In which type of economy would the change in Real GDP be greater?

Accepted Answer

In a closed economy,contractionary fisca

Question 19

If U.S.real interest rates fall,international repercussions put _________________ pressure on the price level and __________________ pressure on Real GDP in the United States.

Accepted Answer

A)  upward; upward 
B)  upward; downward 
C)  downward; upward 
D)  downward; downward 
A)  upward; upward 
B)  upward; downward 
C)  downward; upward 
D)  downward; downward

Question 20

In a two-country world,an increase in the real interest rate in the domestic economy (relative to the real interest rate in the foreign economy)shifts

Accepted Answer

A)  the domestic AD curve leftward and the domestic SRAS curve rightward. 
B)  the domestic AD curve rightward and the domestic SRAS curve leftward. 
C)  both the domestic AD curve and the domestic SRAS curve rightward. 
D)  both the domestic AD curve and the domestic SRAS curve leftward. 
E)  the domestic AD curve leftward and does not affect the domestic SRAS curve. 
A)  the domestic AD curve leftward and the domestic SRAS curve rightward. 
B)  the domestic AD curve rightward and the domestic SRAS curve leftward. 
C)  both the domestic AD curve and the domestic SRAS curve rightward. 
D)  both the domestic AD curve and the domestic SRAS curve leftward. 
E)  the domestic AD curve leftward and does not affect the domestic SRAS curve.

Exam 36: Globalization and International Impacts on the Economy

If an economy's exports are $560 billion and its imports are $730 billion,its net exports are

In recent years,the Chinese government's actions have had an impact on interest rates in the United States.

Between 1990 and 2003,college tuition went up 130 percent,which is __________ the increase in the prices of housing,gasoline,and medical care.

The Cold War

A rise in net exports shifts the

If Japan's Real GDP rises,this tends to _________________ United States exports,shifting the United States AD curve to the __________________.

Dollar depreciation raises United States Real GDP when the __________ shift of the AD curve exceeds the _________________ shift of the SRAS curve.

According to J-curve theory,imports initially increase after a country's currency depreciates,but in the long run imports decrease.

In the short run following a depreciation of the dollar,the United States may move downward along the J-curve since it is likely that the United States

Suppose the price level in Germany rises,ceteris paribus. This ________________ United States net exports,ultimately shifting the United States AD curve ____________________.

Globalization

Describe three factors that have led to the recent push toward globalization.

The consumer price index (CPI)increased at a slower rate during the period 1990-2004 than the import price index.

If Germany's Real GDP rises,this tends to ________________ United States exports,shifting the United States AD curve to the ___________________.

Dollar depreciation lowers United States Real GDP when the _____________ shift of the SRAS curve exceeds the __________ shift of the AD curve.

The end of the Cold War is generally marked by the fall of the Berlin Wall in

As the dollar depreciates,the dollar price of imported goods _________,ultimately shifting the United States AD curve __________________.

Describe the impact of contractionary fiscal policy (such as a decrease in government spending)upon Real GDP in both a closed economy and an open economy. In which type of economy would the change in Real GDP be greater?

If U.S.real interest rates fall,international repercussions put _________________ pressure on the price level and __________________ pressure on Real GDP in the United States.

In a two-country world,an increase in the real interest rate in the domestic economy (relative to the real interest rate in the foreign economy)shifts

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

Macroeconomic Measurements: Prices and Unemployment

Macroeconomic Measurements: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability: A Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money, Banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, Technology, Ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,Unions,and Labor

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case For and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Agriculture: Problems, Policies, and Unintended Effects

Filters

If Japan's Real GDP rises,this tends to _ United States exports,shifting the United States AD curve to the __.

Dollar depreciation raises United States Real GDP when the shift of the AD curve exceeds the _______ shift of the SRAS curve.

Suppose the price level in Germany rises,ceteris paribus. This United States net exports,ultimately shifting the United States AD curve ____.

If Germany's Real GDP rises,this tends to United States exports,shifting the United States AD curve to the ___.

Dollar depreciation lowers United States Real GDP when the ___ shift of the SRAS curve exceeds the shift of the AD curve.

As the dollar depreciates,the dollar price of imported goods _,ultimately shifting the United States AD curve __________.

If U.S.real interest rates fall,international repercussions put _ pressure on the price level and __ pressure on Real GDP in the United States.