Supply-side inflation is caused by
A) an increase in aggregate demand and no change in aggregate supply.
B) a decrease in aggregate supply and no change in aggregate demand.
C) a decrease in aggregate demand and no change in aggregate supply.
D) an increase in aggregate supply and no change in aggregate demand.
B
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Use the following graph, which shows the supply and demand curves for dollars in the pound/dollar market, to answer the next question.
Assume that D1 and S1 are the initial demand for and supply of dollars. Now suppose that Great Britain increases its imports of American products. Assuming freely-floating exchange rates, ________.
A. the dollar price of pounds will increase to $5 = 1 pound B. the pound price of dollars will rise to 1/4 pound = $1 C. the pound price of dollars will fall to 1/5 pound = $1 D. Britain will experience a dollar shortage of N?M
Nations get significant advantages if they have a single, valuable, natural resource, with little downside risk
Indicate whether the statement is true or false
In economics, the term marginal refers to:
A. the change or difference from a current situation. B. man-made resources as opposed to natural resources. C. the satisfaction a consumer receives from a good. D. holding everything else constant in the analysis.
A depreciation of a nation's currency is
A. the increase in the exchange value of one nation's currency in terms of an other nation. B. the decrease in the exchange value of one nation's currency in terms of another nation. C. a situation in which exchange rates are allowed to fluctuate in the open market in response to changes in supply and demand. D. a nation in which households, firms, and governments buy and sell national currencies.