Why does the supply curve of Japanese yen slope up?
What will be an ideal response?
Japanese residents supply yen when they want to buy U.S. goods and services. The higher the price of the yen, the lower the Japanese price for the dollar. So, as the yen price of the dollar falls, Japanese residents demand more dollars and supply more yen.
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
A lower price level causes us to
A) move up along the aggregate demand curve. B) move down along the aggregate demand curve. C) shift the aggregate demand curve to the right. D) shift the aggregate demand curve to the left.
Many social policies, such as progressive income tax systems, are based on the idea that
a. everyone values money the same b. politicians are more responsive to the interests of the rich c. interpersonal comparisons of utility, however difficult, can be made d. the poor have a lower consumer surplus than the rich e. everyone has the same utility function
Sam's surf shop has total costs of $2,000 when it is not producing any surfboards. This means that
A. Variable costs are $2000. B. The shop is very inefficient in its production. C. Fixed costs are zero. D. Fixed costs are $2,000.