If the price level rises and the money wage rate remains constant, what happens to the quantity of real GDP supplied? Along which aggregate supply curve does the economy move?
What will be an ideal response?
If the price level rises and the money wage rate remains constant the quantity of real GDP supplied increases and the economy moves along the SAS curve.
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The expected rate of currency depreciation is equal to the proportional difference between the forward rate and the spot rate. This is known as the:
a. forward depreciation. b. backward depreciation. c. forward premium. d. backward premium.
Suppose the nation of Alphonia was charged with dumping electric lawnmowers in the nation of Omegalon. The result of Omegalon imposing anti-dumping tariffs on electric lawnmowers manufactured in Alphonia would most likely be:
A. an increased market share for Alphonian-manufactured electric lawnmowers in Omegalon. B. higher selling prices on electric lawnmowers in Omegalon. C. lower selling prices on electric lawnmowers in Alphonia. D. increased exports of electric lawnmowers from Alphonia.
Injunctions are good remedies for problems where damage has already occurred.
Answer the following statement true (T) or false (F)
Government can use its ability to coerce towards improving economic efficiency by:
A. Reducing the production of output with external benefits B. Reducing the production of output with public-goods characteristics C. Increasing the production of output with external benefits D. Increasing the production of output with external costs