If the national output cannot be increased unless the productive capacity or potential GDP increases, the aggregate supply curve is:
a. downward-sloping.
b. U-shaped.
c. vertical.
d. upward-sloping.
e. horizontal.
c
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An increase in the value of a domestic currency in terms of other currencies is known as
A) an appreciation. B) a depreciation. C) a flexible exchange rate. D) a term not given in the above answers.
Explain why risk can be insured against but uncertainty cannot
What will be an ideal response?
A tax on U.S. imports of Chinese-made tires is likely to:
a. reduce the price of tires for the domestic buyers for tires in the U.S. b. reduce the volume of imports c. increase the volume of imports d. have no effect on the volume of imports
If North Korea is currently producing at efficiency, and it proceeds to increase the size of its military, then, as long as nothing else changes, its
A. Production of nonmilitary goods will increase. B. Production possibilities curve will shift inward. C. Production possibilities curve will shift outward. D. Production of nonmilitary goods will decrease.