How will an increase in the world price of crude oil influence the economy of an oil-importing country such as the United States?
a. Aggregate supply will decrease, leading to a decrease in real GDP.
b. Aggregate supply will increase, leading to an increase in real GDP.
c. Aggregate supply will increase, leading to an increase in prices and smaller GDP.
d. A change in the price of an imported good will not affect the domestic economy of an oil-importing country.
a
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If the income per capita of United Kingdom is £23,800 and dollar/pound exchange rate (US$/£) is 1.68 in 2014, the income per capita of UK in US dollars in the same year is ________
A) $30,400 B) $22,829 C) $12,812 D) $39,984
A central bank ________ of domestic currency and corresponding ________ of foreign assets in the foreign exchange market leads to an equal decline in its international reserves and the monetary base, everything else held constant
A) sale; purchase B) sale; sale C) purchase; sale D) purchase; purchase
In the Solow growth model, the law of motion of capital takes into account
A) the residential nature of houses. B) the mobility of capital. C) the depreciation of old capital. D) the cost of shipping and installing capital.
_____________ can play a useful role in passing rules on how businesses operate, but these well-intentioned laws can, in some cases, become so intrusive that businesses decide to place limits on their hiring.
a. People b. Cities c. Government d. The World Trade Organization