If the U.S. dollar appreciates in the foreign exchange market, then:?
What will be an ideal response?
?American goods will become more expensive for foreign buyers and foreign goods will be cheaper for Americans.
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The low interest rates that prevailed after 1942 made World War II (1941–45) financing problems fundamentally the same as World War I (1914–18)
Indicate whether the statement is true or false
Figure 4-4
Given the demand and supply conditions shown in , what will happen as the result of imposing a price ceiling of a?
a.
Demand for the product will decline.
b.
Supply will increase.
c.
There will be a shortage of the product.
d.
Over time, the quality of the product offered by suppliers will increase.
??Exhibit 16A-2 Macro AD/AS Models
?
?As shown in Panel (b) of Exhibit 16A-2, assume the economy adopts a classical nonintervention policy. Which of the following would cause the economy to self-correct?
A. ?Competition among firms for workers increases the nominal wage and SRAS shifts rightward. B. ?Long-run equilibrium will be established at Y1 and P2. C. ?Long-run equilibrium will be established at Yp and P3. D. ?Competition among unemployed workers decreases nominal wages and SRAS shifts rightward.
Refer to the above figure for the individual firm in a perfectly competitive market. If the firm's average costs are given by AC3, then
A. the industry supply curve will shift rightward. B. the industry demand curve will shift rightward. C. the industry supply curve will shift leftward. D. none of these.