One signal that the U.S. dollar was overvalued in the early 1970s was
a. the stable price of gold
b. the volume of international trade
c. the recurring balance of trade deficits in the United States
d. the recurring balance of trade deficits in European countries
e. reduced deposits in the World Bank
C
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In a short-run macroeconomic equilibrium, potential GDP exceeds real GDP. If aggregate demand does not change, then the
A) short-run aggregate supply curve will shift rightward as the money wage rate falls. B) short-run aggregate supply curve will shift leftward as the money wage rate rises. C) long-run aggregate supply curve will shift leftward as the money wage rate rises. D) long-run aggregate supply curve will shift leftward as the money wage rate falls.
New Keynesian economists generally argue that
A) there is an exploitable tradeoff between unemployment and inflation. B) changes in aggregate demand will have relatively greater effects on real GDP when firms change prices less frequently. C) activist policy can be used to reduce the fluctuations in real GDP. D) all of the above
The fishing and whaling occupations in the early colonies:
a. never amounted to a significant economic force. b. were a major influence in the early colonial economy. c. started only in the eighteenth century. d. were mixed in their economic impact, with fishing being the least important and whaling being most important.
When a monopolistically competitive firm is in a long-run equilibrium, the values of marginal cost, average total cost, and price are all the same
a. True b. False Indicate whether the statement is true or false