In the Short Run, an Increase in Net Exports Causes

question 16

Multiple Choice

In the short run, an increase in net exports causes

• A) an increase in real GDP and the price level.
• B) an increase in real GDP and a decrease in the price level.
• C) a decrease in real GDP and an increase in the price level.
• D) a decrease in real GDP and the price level.

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Definitions:

Archival Data

Information collected and stored in archives, including documents, records, and datasets that are used for research or reference.

External Validity

The extent to which the findings of a study can be generalized to other settings, populations, and times beyond the study conditions.

Independent Variable

A variable that is manipulated or changed in an experiment to see if it has an effect on the dependent variable.

Correlation Coefficient

A statistical measure that indicates the extent to which two or more variables fluctuate together, ranging from -1 to 1, where 1 means a perfect positive relationship, -1 means a perfect negative relationship, and 0 means no relationship.