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1. Over the past three decades, the United States has
a.
generally had, or been very near to a trade balance.
b.
had trade deficits in about as many years as it has trade surpluses.
c.
persistently had a trade deficit.
d.
persistently had a trade surplus.
2. Many U.S. business leaders argue that the current state of U.S. net exports is the result of
a.
U.S. export subsidies.
b.
free trade policies of foreign governments.
c.
unproductive U.S. workers.
d.
unfair foreign competition.
3. The open-economy macroeconomic model takes
a.
GDP, but not the price level as given.
b.
the price level, but not GDP as given.
c.
both the price level and GDP as given.
d.
the price level and GDP as variables to be determined by the model.
4. Because the open-economy macroeconomic model focuses on the long run, it is assumed that
a.
GDP, but not the price level is given.
b.
the price level, but not GDP is given.
c.
both the price level and GDP are given.
d.
the price level and GDP are variables to be determined by the model.
5. The open-economy macroeconomic model examines the determination of
a.
the output growth rate and the real interest rate.
b.
unemployment and the exchange rate.
c.
the output growth rate and the inflation rate.
d.
the trade balance and the exchange rate.
6. The open-economy macroeconomic model includes
a.
only the market for loanable funds.
b.
only the market for foreign-currency exchange.
c.
both the market for loanable funds and the market for foreign-currency exchange.
d.
neither the market for loanable funds nor the market for foreign-currency exchange.
