Exam 36: Globalization and International Impacts on the Economy

If the dollar depreciates,the U.S.AD curve shifts _______________,the U.S.SRAS curve shifts __________________,and the price level will _________________________.

With an increase in the budget deficit,the open-economy outcome,compared to the closed-economy outcome,features a ___________ in Real GDP.

Expansionary fiscal policy raises Real GDP more in a closed economy than in an open economy.

Describe at least three forces in the world which could change to push the world in the direction of antiglobalization.

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

If the United States buys inputs from France and the dollar appreciates relative to the euro,then Americans will have to pay ________________ for foreign inputs,and the U.S.SRAS curve will shift __________________.

Suppose we import only one good from Germany: cars. Initially,the exchange rate is $0.60 per euro. We import 150,000 cars annually,priced at 70,000 euros each. Then the euro rises to $0.625. Assuming the dollar value of our exports to Germany remains constant,we will stop moving down the J-curve and "turn the corner" to move upward along it once we import ______________ German cars per year.

When real interest rates fall in the United States relative to interest rates in Japan,the yen appreciates and the dollar depreciates.

When real interest rates in the United States rise relative to real interest rates in Japan,what is the impact on the U.S.price level? Explain your answer using AD-SRAS analysis.

Everyone agrees that globalization causes greater income inequality between rich and poor countries.

When World War II ended,the new era of globalization began.

When the dollar depreciates,this shifts the AD curve rightward and the SRAS curve leftward,which will always lead to a higher Real GDP.

Some of the benefits of globalization include

Can a change in the Japanese price level cause the United States to move downward along its J-curve?

The United States SRAS curve may shift to the right if we ____________________ Malaysia and the dollar ________________ against the Malaysian ringgit.

An increase in U.S.real interest rates causes the dollar to _________________,which tends to __________________ U.S.Real GDP.

In the early 1900s tariffs accounted for ____________ of all federal government revenues,whereas today they account for less than ____________ percent.

In recent years,tariff rates have declined in the United States,China,and India.

If the dollar appreciates and the U.S.AD curve shifts _______________ by an amount less than the U.S.SRAS curve shifts __________________,then Real GDP will _________________________.

If an economy's exports are $800 billion and its imports are $750 billion,its net exports are