A Simple Macroeconomic Model Might Explain How an Increase in the Demand

question 5

Multiple Choice

A simple macroeconomic model might explain how an increase in the demand for new housing would lead to a decrease in the rate of unemployment.In such a model,which of these variables is likely to be exogenous?

• A)the quantity sold of home furnishings
• B)the degree of unionization of the construction industry
• C)the wage rate for unskilled workers
• D)the level of tax revenues
• E)the demand for concrete

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Definitions:

Trade Deficit

A condition where the value of a nation's imports surpasses that of its exports, leading to a trade deficit.

Exports

Goods or services sold by one country to purchasers in another country.

Imports

Goods or services brought into a country from abroad for sale, which can impact a nation's balance of trade.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, resulting in a negative balance of trade.