If Net Exports Are Positive

question 63

Multiple Choice

If net exports are positive,

• A) the equilibrium GDP must be greater than the full-employment GDP.
• B) imports must exceed exports.
• C) aggregate expenditures are greater at each level of GDP than when net exports are zero or negative.
• D) some other component of aggregate expenditures must be negative.

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Definitions:

Northwest Territory

A historic region northwest of the Ohio River that was established as the first organized territory of the United States in 1787, setting a pattern for future statehood.

Indian Tribes

Indigenous peoples in the United States, each with their own distinct cultures, languages, histories, and governments recognized by the federal government as sovereign entities.

American Republic

A term referring to the United States as a republic where the government is characterized by a separation of powers and driven by the principles of democracy.

Jay Treaty

A 1794 agreement between the United States and Great Britain that sought to settle outstanding issues remaining since the Treaty of Paris, which ended the Revolutionary War.