When we compare the graphs for an increase in aggregate demand and the Phillips curve, we see that ______.
a. the impact of inflation on RGDP varies depending on which approach is used
b. neither graph shows the relationship between inflation and unemployment rates
c. neither graph shows how price changes influence RDGP
d. both graphs show the same outcome in different ways
d. both graphs show the same outcome in different ways
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A balance of payments surplus occurs if
A) the supply of a nation's currency is equal to the demand for the currency at the current exchange rate. B) exports exceed imports. C) the supply of a nation's currency exceeds the demand for the currency at the current exchange rate. D) the demand for a nation's currency exceeds the supply of the currency at the current exchange rate.
If Tom spends 4 hours a day on Facebook and the minimum wage in his country is $7 per hour, what is his opportunity cost of spending time on Facebook? Given that spending time on Facebook has an opportunity cost, does this analysis suggest that Tom
should work rather than spending his time on social networking?
The interest rate that commercial banks charge each other for loans of reserves to meet their minimum reserve requirements is called:
A) treasury bill rate. B) federal funds rate. C) prime interest rate. D) none of the above.
If the federal government tries to make fiscal policy sustainable by increasing taxes on wages, the opportunity cost of leisure will ________ and will result in ________ potential GDP
A) increase; lower B) decrease; higher C) decrease; lower D) increase; higher