When the Price Level in the United States Rises, Then

question 2

Multiple Choice

When the price level in the United States rises, then net exports should

• A)rise and equilibrium real GDP should increase.
• B)fall and equilibrium real GDP should increase.
• C)fall and equilibrium real GDP should decrease.
• D)rise and equilibrium real GDP should decrease.

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Definitions:

Economic

Pertaining to the production, distribution, and consumption of goods and services, or the material welfare of humans.

Political

Relating to the government or public affairs of a country.

National

Pertaining to or characteristic of a whole nation or country, as opposed to local or regional characteristics.

Market Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing strategies.