What are the two short-run effects of increasing the quantity of nation's money?
Higher inflation and lower unemployment
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Mutually beneficial trade will occur whenever the exchange rate between the goods involved is set at a level where:
A. each country can export a good at a price below the opportunity cost of producing the good in the domestic market. B. each country can import a good at a price below the opportunity cost of producing the good in the domestic market. C. the exchange ratio is exactly equal to the opportunity cost of producing the good in each country. D. each country will specialize in the production of those goods in which it has an absolute advantage.
What is knowledge an example of?
a) a public good b) a private good c) a common resource d) a club good
Refer to Scenario 7.4 below to answer the question(s) that follow.SCENARIO 7.4: You own and are the only employee of a company that sells custom embroidered pet sweaters. Last year your total revenue was $120,000. Your costs for equipment, rent, and supplies were $30,000. To start this business you invested an amount of your own capital that could pay you a $50,000 a year return.Refer to Scenario 7.4. Your economic profit last year was
A. -$20,000. B. $40,000. C. $70,000. D. $90,000.
An increase in the expected inflation rate will: a. shift the short-run Phillips curve upward and to the right
b. shift the short-run Phillips curve downward and to the left. c. not shift the short-run Phillips curve unless the unemployment rate changes. d. cause the unemployment rate associated with each inflation rate to decrease. e. tend to increase production unless the actual inflation rate also increases.