Under a gold standard, if the U.S. has a trade deficit with Japan,
A. the U.S. would receive gold from Japan, the Japanese money supply would decline, and the price level would fall in Japan.
B. the U.S. would receive gold from Japan, the U.S. money supply would increase, and the U.S. price level would rise.
C. the U.S. would lose gold to Japan, the U.S. money supply would increase, and the price level in the U.S. would increase.
D. the U.S. would lose gold to Japan, the U.S. money supply would decline, and the U.S. price level would fall.
D. the U.S. would lose gold to Japan, the U.S. money supply would decline, and the U.S. price level would fall.
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Differences in resource endowments are differences in
a. tariffs charged by each country b. consumption patterns across nations c. production patterns across nations d. the quantity, but not the quality, of resources available in different nations e. the quality and quantity of resources available in different nations
According to Figure 6.1:
A. soup is a normal good.
B. soup is an inferior good.
C. soup is a Giffen good.
D. bread is an inferior good.
Suppose Congress decides to reduce government expenditures by reducing its purchases of weapons systems. Which of the following would you expect to occur as a result of this change? a. The economy will move up and to the left along the short-run Phillips Curve. b. The economy will move down and to the right along the short-run Phillips Curve. c. The short-run Phillips Curve will shift to the
left. d. The short-run Phillips Curve will shift to the right.
The recovery phase of the business cycle is _____ followed by the prosperity phase.
A. never B. sometimes C. usually D. always