Question

20A trade balance where exports exceed imports is called:

		trade surplus.
		trade deficit.
		budget deficit.
		none of the above.

21Capital flows deal with:

		buying and selling of newly produced final goods and services among countries.
		buying and selling of existing real and financial assets among countries.
		buying and selling of only domestic final goods and services.
		none of the above.

22Potential GDP is:

		minimum amount of output that can be produced given the labor force, capital stock, and technology.
		maximum amount of output that can be produced given the labor force, capital stock, and technology.
		varies over the business cycle.
		none of the above.

23Short-run macroeconomic policies concentrate on:

		minimizing fluctuations around potential GDP.
		maximizing fluctuations around potential GDP.
		incentives for increasing productivity and the potential output of the economy.
		none of the above.