Other things being equal, appreciation of the dollar
A) increases aggregate demand in the United States, and may decrease aggregate supply by reducing the prices of imported resources.
B) increases aggregate demand in the United States, and may increase aggregate supply by reducing the prices of imported resources.
C) decreases aggregate demand in the United States, and may decrease aggregate supply by increasing the prices of imported resources.
D) decreases aggregate demand in the United States, and may increase aggregate supply by reducing the prices of imported resources.
D
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Banks considered "too big to fail" were:
A. bailed out through fiscal policy. B. bailed out through consumer spending. C. allowed to go bankrupt. D. helped by fiscal policy, but eventually went bankrupt.
Suppose that the economy has witnessed an 8 percent increase in its money supply over the last few years and the Fed now announces a plan to increase the money supply by 4 percent per year. What will be the public response, assuming that the Fed has a reputation for always implementing its announced plans?
a. High-wage contracts will prevail, and the economy will experience lower inflation at the cost of higher unemployment. b. High-wage contracts will prevail, and the economy will experience lower unemployment at the cost of higher inflation. c. Low-wage contracts will emerge, and the economy will experience lower inflation with no change in the unemployment rate. d. Low-wage contracts will emerge and the economy will experience higher unemployment with no change in the inflation rate. e. Low-wage contracts will emerge, and the economy will experience lower inflation at the cost of higher unemployment.
An decrease in the price of oranges would lead to a(n)
a. increased supply of oranges. b. increase in the prices of inputs used in orange production. c. a movement down and to the left along the supply curve for oranges. d. a movement up and to the right along the supply curve for oranges.
When average variable cost is falling ______.
a. the average total cost curve must be moving upward b. the point of diminishing marginal product has set in c. marginal cost must be less than the average variable cost d. the average fixed cost curve crosses it at its lowest point