Refer to the above figure. Suppose the equilibrium moves from E' to point E. An event that could have caused this movement is
A. an increase in the real interest rate in the United States.
B. an increase in the perceived stability of the U.S. economy.
C. an increase in demand for Japanese-produced goods by U.S. residents.
D. an increase in U.S. productivity.
Answer: C
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If the nominal gross domestic product (GDP) for the year 2000 was $6.2 trillion and the price index was 200, the real gross domestic product (GDP) for 2000 was _____
a. $3.1 trillion b. $6.2 trillion c. $12.4 trillion d. $18.6 trillion e. $24.3 trillion
Policies that reduce the time it takes unemployed workers to find new jobs
a. can reduce both frictional unemployment and the natural rate of unemployment. b. can reduce frictional unemployment, but they cannot reduce the natural rate of unemployment. c. cannot reduce frictional unemployment, but they can reduce the natural rate of unemployment. d. cannot reduce either frictional unemployment or the natural rate of unemployment.
When a nation is in a debt crisis, the government's level of debt is so high that:
A. monetary policy is ineffective. B. the government is unable to find willing lenders so it can continue borrowing. C. it can only be solved with a fiscal stimulus of lower taxes and more government spending. D. other countries will be unwilling to buy goods and services from the nation.
Which of the following is TRUE for the perfectly competitive firm?
A) Price and MR are always equal. B) AR is less than price. C) AR is more than price. D) Price elasticity of demand is equal to 1.