When the value of the dollar decreases, the net effect on the economy
A. will be decrease in short-run aggregate supply and an increase in aggregate demand.
B. will be an increase in short-run aggregate supply and a decrease in aggregate demand.
C. will be an increase in both aggregate demand and aggregate supply.
D. will be a decrease in both aggregate demand and aggregate supply.
Answer: A
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The figure illustrates the demand for and supply for jeans. Suppose jeans are a normal good and people's incomes increase
At the initial price of $50 for a pair of jeans, after the increase in income the quantity demanded is ________ than the equilibrium quantity and there is a ________ of jeans. A) greater; surplus B) greater; shortage C) less; surplus D) less; shortage
Total factor productivity shocks are not a good explanation of economic fluctuations in the New Keynesian model for all the following reasons except
A) they do not generate output fluctuations. B) employment drops when TFP increases. C) the real wage drops when TFP increases. D) they do not generate price fluctuations.
The largest level of government as measured by total spending is _____
a. federal government b. state governments c. county governments d. city governments
A primary difference between rebates and coupons?
A) Coupons allow individuals to sort themselves into the high-elasticity group after the sale. B) Neither coupons or rebates are redeemed in high numbers. C) Rebates allow individuals to sort themselves into the high-elasticity group after the sale. D) Coupons are legal and rebates are illegal.