If Inflation in the United States Is Lower Than Inflation

question 63

Multiple Choice

If inflation in the United States is lower than inflation in other countries,what will be the effect on net exports for the United States?

• A)Net exports will rise as U.S.exports increase.
• B)Net exports will rise as U.S.imports increase.
• C)Net exports will decrease as U.S.exports decrease.
• D)Net exports will decrease as U.S.imports decrease.

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Definitions:

Marginal Product

The additional output that is produced by using one more unit of a particular input.

Total Product

The overall amount of products or services generated by a company during a specified timeframe.

Average Product

The output per unit of input, calculated by dividing total output by the total quantity of input.

Production Technology

Techniques, equipment, and software used in the production of goods and services.