1)Venus nation's total output exceeds its domestic spending. This means Venus nation has

A)positive net capital outflow and negative net exports.

B)negative net capital outflow and positive net exports.

C)negative net capital outflow and negative net exports.

D)positive net capital outflow and positive net exports.

2)A U.S dollar buys 12 Kenya Shillings, and a cellphone costs $900 Shillings in Kenya and $125 in U.S. Compute the real exchange rate.

A)5/2 and arbitrageurs could profit by buying the phone in the U.S. and selling it in Kenya.

B)3/5 and arbitrageurs could profit by buying the phone in the U.S. and selling it in Kenya.

C)5/3 and arbitrageurs could profit by buying the phone in Kenya and selling it in U.S.

D)86.4 and arbitrageurs could profit by buying the phone in Kenya and selling it in U.S.

3)Which of the following isnotcorrect?

A)An economy's natural rate of unemployment refers to the amount of unemployment that the economy normally experiences.

B)Natural rate of unemployment includes both frictional and structural unemployment.

C)The natural rate of unemployment is associated with short-run ups and downs of economic activity.

D)In the long run the unemployment rate equals the natural rate of unemployment.

4)Which of the following isnotcorrect?

A)Economic fluctuations are easily predicted by competent economists.

B)During a recession firms cut back production and workers are laid off.

C)The model of aggregate demand and aggregate supply is used by most economists to analyze short-run fluctuations.

D)Over the business cycle investment fluctuates more than consumption.

5)A simultaneous rise in prices, a fall in interest rates and currency depreciation causes

A)an increase in total quantity of goods and services demanded.

B)a rightward shift in the aggregate-demand curve.

C)a leftward shift in the aggregate demand curve.

D)the short-run aggregate supply curve to shift.