If US Imports of Goods and Services Exceed Exports, U

question 79

Multiple Choice

If U.S. imports of goods and services exceed exports, U.S.:

• A)GDP is less than the sum of consumption, investment, and government purchases.
• B)GDP exceeds the sum of consumption, investment, and government purchases.
• C)net exports are positive.
• D)GDP equals the sum of consumption, investment, and government purchases.

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Definitions:

Keynes

Refers to the economic theories and policies advocated by John Maynard Keynes, which emphasize government intervention to manage economic cycles and stimulate economy-wide demand.

Classical School

An economic theory originating in the late 18th century, emphasizing free markets, competition, and the minimal role of government in the economy.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States and leading to significant declines in industrial production, mass unemployment, and deflation.

Economic Thought

The study and ethoses regarding economics and its methodologies, including the insights and theories developed over time by economists.