If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output.
B. lower price level and lower level of output.
C. higher price level and higher level of output.
D. lower price level and higher level of output.
Answer: A
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If all income is consumed in a year, then
A) income next year will increase. B) investment spending will be zero. C) any investment spending will be done by the government. D) investment spending will increase.
Regarding operating risk exposure, which of the following statements is NOT true?
a. they are more difficult to hedge than transaction risk exposures b. they are easier to forecast than translation risk exposures c. they necessitate more managerial attention and extensive analysis d. only a and b e. all of the above are true
What is a cartel?
What will be an ideal response?
If inflation in the rest of the world is lower than inflation in Brazil, Brazil's currency (the real) would tend to appreciate
Indicate whether the statement is true or false