From full long-run equilibrium, expectations of future exchange rates can only change when there is:
a. a political change.
b. a permanent change in the quantity of money.
c. a change in short-run interest rates.
d. a temporary decrease in the quantity of money.
Answer: b. a permanent change in the quantity of money.
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John is a U.S. citizen who bought a house in Canada. This purchase will lead to a(n) ________
A) decrease in the GDP of Canada B) increase in the GDP of Canada C) increase in the GDP of U.S. D) decrease in the GDP of U.S.
Sasha has a master's degree in writing, and currently works full-time as a 2nd grade classroom helper. She submits articles for the local paper on occasion, and gets paid only when the editor agrees to publish a submission. Sasha would love to be a full-time reporter. The best way to describe Sasha is to say she is ________________; the Bureau of Labor Statistics would count Sasha as ____________.
A. underemployed; employed B. employed; employed C. discouraged; underemployed D. underemployed; underemployed
Marginal revenue for a perfectly competitive firm equals: a. the addition to total cost from producing one more unit of output. b. average revenue at all levels of output
c. marginal cost at all levels of output. d. average total cost at all levels of output.
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.