Refer to Figure 13-1. Ceteris paribus, an increase in the value of the domestic currency relative to foreign currencies would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
B
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The slope of a country's production possibility frontier with cloth measured on the horizontal and food measured on the vertical axis in the Ricardian model is equal to ________ and it ________ as more cloth is produced
A) -MPLF/MPLC; is constant B) -MPLF/MPLC; becomes steeper C) -MPLF/MPLC; becomes flatter D) -MPLC/MPLF; becomes steeper E) -MPLC/MPLF; is constant
The above figure shows the cost curves for a competitive firm. The firm will incur economic losses if the price is less than
A) $0. B) $5. C) $10. D) $11.
Which of the following if true would suggest that an expansionary gap exists in an economy?
a. Rapid inflation during a period when plant capacity utilization is below average b. A steady price level coupled with a 5 percent unemployment rate c. An unemployment rate below its natural rate and an unexpected increase in the consumer price index d. Sluggish growth in the rate of inflation and an exceptional increase in the Dow Jones average e. A modest increase in the number of new unemployment claims and a lower than expected price level
If economic profits are $100,000, and implicit costs are $50,000, how much are your accounting profits?
What will be an ideal response?