Q7.

A country imports $15 billion worth of goods and services, while its sales of goods and services to other country is $18 billion. If it's net primary income is $4 billion and net secondary income is $1 billion then it has

Select one:

a.$8 billion surplus in its current account.

b.$11 billion surplus in its current account.

c.$6 billion surplus in its current account.

d.deficit of $38 billion in its current account.

Q9.

Structural budget deficit may represent a better measure of government fiscal position because

Select one:

a.budget deficit varies over the business cycle due to the presence of automatic stabilisers

b.it is positive when economy is producing at potential GDP

c.it takes into account sustainability of government debt

d.it is negative when economy is producing at potential GDP

Q10.

When considering the trend of an exchange rate over the period of 10-15 years, economist would expect the following variables to be important in explaining this trend

Select one:

a.Relative rates of productivity growth across countries

b.Preferences for domestic and foreign goods across countries

c.All of these answers are correct

d.Relative price levels across countries

Q12.

Consider the following data for a national economy. Consumption is $6 000, government spending is $1 200, gross investment is $2 500, exports are $2 000, and imports are $1 000. What is gross domestic product?

Select one:

a.$11 700

b.$10 800

c.$9 700

d.None of the options is correct

Q13.

We can expect an increase in the value (appreciation) of the Australian dollar relative to Indian rupiah when

Select one:

a.all answers are correct

b.domestic interest rates decrease in Australia but not in other countries.

c.Interest rates increase in India

d.Indian economy is going into an expansion and Australia's exports to India are large

just the answers please and thank you