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:

Financial Position

A snapshot of the resources a company controls and its obligations at any given time, indicating its economic standing.

Stock Dividend Distributable

A declaration by a company’s board of directors to issue a dividend in the form of additional shares rather than cash.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; represents ownership interest.

Canada Business Corporations Act

The Canada Business Corporations Act is federal legislation that governs the incorporation and operation of corporations in Canada.