a. Assuming the economy is operating below its potential output, an increase in net exports willincrease aggregate expenditures, but decrease real GDP.O increase aggregate expenditures and real GDP.O decrease aggregate expenditures, but increase real GDP.decrease aggregate expenditures and real GDP.b. It is difficult, perhaps even impossible, for the United States to boost its net exports by increasing its tariffs during a global recession.This is because other countries will respond in-kind byO increasing tariffs on U.S. goods, causing U.S. exports and thus net exports to increase.decreasing tariffs on U.S. goods, causing U.S. exports and thus net exports to increase.decreasing tariffs on U.S. goods, causing U.S. exports and thus net exports to decline.O increasing tariffs on U.S. goods, causing U.S. exports and thus net exports to decline.

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a. Assuming the economy is operating below its potential output, an increase in net exports will O increase aggregate expenditures, but decrease real GDP. ***** Oincrease aggregate expenditures and real GDP. O decrease aggregate expenditures, but increase real GDP. O decrease aggregate expenditures and real GDP.

a. Assuming the economy is operating below its potential output, an increase in net exports will O increase aggregate expenditures, but decrease real GDP. ***** Oincrease aggregate expenditures and real GDP. O decrease aggregate expenditures, but increase real GDP. O decrease aggregate expenditures and real GDP.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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