When the international financial system operated under the gold standard,
a. the currencies of most countries were convertible into gold
b. all international transactions were financed with gold
c. the price of gold was determined by the supply and demand for foreign exchange
d. the quantity of money demanded was always the same
e. there was very little inflation
A
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In the short run, a firm will eventually experience rising per-unit costs because of:
a. economies of scale. b. diseconomies of scale. c. the law of supply. d. the law of diminishing returns.
A curve depicting the relationship between the average price level and the inflation-adjusted quantity of final goods and services produced in the economy is called an
A. aggregate expenditure curve. B. aggregate demand curve. C. aggregate supply curve. D. aggregate income curve.
Exhibit 14A-2 Macro AD-AS Model
In Exhibit 14A- 2, the intersection of AD with SRAS indicates:
A. a short-run equilibrium. B. a long-run equilibrium. C. that the economy needs policies to increase unemployment. D. that the economy is at full employment.
Real income in Year X is equal to:
a. Year X nominal income x CPI. b. (Year X nominal income/Year X real output)*100 c. (Year X nominal income/Year X real GDP)*100 d. none of the above.