If output exceeds its full-employment level, the wage rate will eventually fall, causing a drop in the price level and a drop in real GDP until full employment is restored
a. True
b. False
B
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Within a fixed exchange rate system, the effect of an expansionary fiscal policy action on the balance of payments will be to
a. worsen the balance on the capital account but improve the trade balance. b. worsen the trade balance but improve the balance on the capital account. c. worsen both the trade balance and the balance on the capital account. d. improve both the trade balance and the balance on the capital account.
In a perfectly competitive market, buyers are completely aware of the asking prices of sellers but sellers are unaware of the bids placed by buyers
Indicate whether the statement is true or false
Judy's Gymnastics is one of a number of firms in an area offering children's gymnastics programs. Judy's advertises that her program is different from all the others because of the classical music she plays during classes. Judy's advertising campaign is
a. wasteful since she's in a perfectly competitive market b. unnecessary since she already has a monopoly c. aimed at increasing market share d. an attempt to make the demand for her classes more elastic e. an example of misleading advertising
The Dow Jones Industrial Average is an arithmetic average of ________ blue-chip industrial stocks.
A. 500 B. 75 C. 30 D. 50