At a constant rate of exchange between currencies, higher inflation makes domestic goods sold abroad ________ expensive and hence, ________ short-run equilibrium output.
A. less; decreases
B. more; increases
C. more; decreases
D. less; increases
Answer: C
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Suppose the economy is at a short-run equilibrium GDP that lies below potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?
A) Unemployment will rise. B) Prices will increase. C) Output will decrease. D) Short-run aggregate supply will shift to the right.
Refer to the table below. If the cost per unit of advertising is constant at $750, what is the level of advertising per week that maximizes the industry joint profit?
Suppose the egg industry is made up of only the three farms above; Happy Chickens, Special Chickens, and Superior Chickens.
A) 4
B) 2
C) 3
D) 1
Increases in stock market wealth have caused Americans to increase their saving rate
a. True b. False Indicate whether the statement is true or false
Gorbachev's reforms were called
a. loans for shares b. de-democratization c. the Liberman reform d. perestroika e. none of the above