Under a fixed exchange rate system, at low domestic real interest rates the demand for domestic currency ________, so the central bank ________ foreign-exchange reserves
A) increases; acquires
B) increases; loses
C) decreases; acquires
D) decreases; loses
D
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
During a recession, cyclical unemployment ________ and real GDP ________
A) increases; increases B) increases; decreases C) decreases; decreases D) decreases; increases E) does not change; decreases
If U.S. consumers increase their demand for apples from New Zealand, then other things the same New Zealand's
a. imports and net exports rise. b. imports rise and net exports fall. c. exports and net exports rise. d. exports rise and net exports fall.
A monopolistic competitor has fixed costs of $100 and marginal costs of $10 per unit. What is its average cost of producing 100 units?
a. $10 b. $11 c. $1,100 d. $2,000