State whether the following statement is true or false.A 10% fall in net imports would always have the same impact on the GDP as a 10% fall in government spending.TrueFalse

Suppose a country's exports exceed imports, which of the following statements are true?This is a multi answer question. You can select one or more options as the answer.A.Net Capital Outflow is negativeB.Domestic Output exceed Domestic SpendingC.Domestic Saving exceed Domestic InvestmentD.Net Export is negative

If the total of government spending plus government transfer payments is less than tax revenues, which of the following must be true?ResponsesThe national debt will increase.The national debt will increase.There is a recessionary gap.There is a recessionary gap.The government budget is in surplus.The government budget is in surplus.The velocity of money will increase.The velocity of money will increase.The money multiplier will increase.

Which statement is true?A.When net capital outflows are positive, net exports are negative.B.In a small open economy, if exports equal $8 billion and imports equal $9 billion, than there is trade deficit and NCO is positive.C.For the LM curve, both taxes and government spending are fixed.D.In the IS-LM model, interest rate links the market for goods and services and the market for real money balances.

An increase in government spending will result in an increase in the price level and an increase in real GDP in the long run.Question 45Answera.Trueb.False

Changes in GDP can reflect changes in the overall level of economic activity within a country.Question 30Answera.Trueb.False