In the dynamic aggregate demand and aggregate supply model, what is the result of aggregate demand increasing faster than potential real GDP?
What will be an ideal response?
Aggregate demand increasing faster than potential real GDP results in inflation.
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The CPI (using a 2000 base year) for 1965 is 26.0 . Suppose a household's annual take-home pay in 1965 was $8,320 . What would be an equivalent home pay in 2000?
a. $10,483. b. $21,632. c. $23,680. d. $32,000.
What is the stock market's role in achieving efficient use of resources?
In the long run, in a price-taker market, the price of a good is determined primarily by the
a. average total cost of producing it. b. decision of buyers in determining how much they are willing to pay for the good. c. elasticity of supply. d. number of firms in the industry.
Which of the following transactions is not a use of funds for Country A?
a. Imports to Country A from the rest of the world. b. Increases in Country A's central bank reserve assets. c. Dividends Country A pays to the rest of the world. d. Loans to Country A from the rest of the world. e. None of the above is a use of funds.4.Sources of funds in the balance of payments are: a. Increases in liabilities and reductions in assets relative to the rest of the world. b. Increases in assets and reductions in liabilities relative to the rest of the world. c. Increases in liabilities and assets relative to the rest of the world. d. Decreases in assets and liabilities relative to the rest of the world.5.Uses of funds in the balance of payments are: a. Increases in liabilities and reductions in assets relative to the rest of the world. b. Increases in assets and reductions in liabilities relative to the rest of the world. c. Increases in liabilities and assets relative to the rest of the world. d. Decreases in assets and liabilities relative to the rest of the world.