If inflation is higher in the home market, what is expected to happen to the real value of the home currency as time passes?
What will be an ideal response?
Appreciates
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Based on the figure above, in which quarter or quarters did a recession occur?
A) between 2013, 2nd quarter to 2014, 2nd quarter B) between 2012, 2nd quarter to 2013, 2nd quarter and also between 2014, 2nd quarter to the end of the figure C) in 2013, 2nd quarter D) after 2013, 2nd quarter E) between 2014, 1st quarter to 2014 2nd quarter
Are the short-run average total cost curve and the long-run average cost both U-shaped for the same reasons? If so, carefully explain these reasons. If not, explain why each curve is U-shaped
What will be an ideal response?
In long-run macroeconomic equilibrium
A) real GDP equals potential GDP. B) the price level is fixed and aggregate demand determines real GDP. C) real GDP and the price level are determined by short-run aggregate supply and aggregate demand and long-run aggregate supply is irrelevant. D) real GDP is less than potential GDP.
If you want to earn a real interest rate of 3% on money you lend, and you expect that inflation will be 2%, what nominal rate of interest will you charge?
A) 1% B) 5% C) 6% D) 9%