What is measured on the vertical axis when we draw a graph of long-run aggregate supply?
A. production of capital goods
B. spending on goods and services in an economy
C. real GDP
D. the price level
Answer: D
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Which of the following will lead to an appreciation of the U.S. dollar against the British pound?
A) an increase in British demand for U.S. imports B) an increase in U.S. demand for British imports C) an increase in British interest rates D) a decrease in British demand for U.S. assets
Explain what will happen to the production possibilities curve over time if society gives up some consumption goods in favor of more capital goods
What will be an ideal response?
What is the "unit of account" function of money?
a. A common measurement of the relative value of different goods and services. b. The ability of money to hold value over time c. The quality of money not to be hoarded because of its commodity value. d. The function of money to be widely accepted I exchange for goods and services.
A Japanese flour mill buys wheat from the United States and pays for it with yen. Other things the same, Japanese
a. net exports increase, and U.S. net capital outflow increases. b. net exports increase, and U.S. net capital outflow decreases. c. net exports decrease, and U.S. net capital outflow increases. d. net exports decrease, and U.S. net capital outflow decreases.