Assuming the economy is experiencing a recessionary gap, classical economists predict that:
A. wages will remain fixed.
B. monetary policy will sell government securities.
C. higher wages will shift the short-run aggregate supply curve leftward.
D. lower wages will shift the short-run aggregate supply curve rightward.
Answer: D
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If the dollar depreciates against the euro it means that French-made goods become more expensive in the United States
Indicate whether the statement is true or false
Which of the following creates a demand for U.S. dollars?
A) Toyota, a Japanese firm, purchasing land in Texas B) a U.S. restaurant purchasing Mexican tomatoes C) a U.S. tourist catching a show in London D) a Japanese tourist catching a show in London
The case of production with a single variable input is analogous to
a. changing the use of land, labor, and capital in production by a constant absolute amount. b. a controlled laboratory experiment in which the scientist permits one variable to change at a time. c. changing the use of land, labor, and capital in production by a constant percentage. d. specialization in one particular product by a company.
A tariff
a. lowers the domestic price of the exported good below the world price. b. keeps the domestic price of the exported good the same as the world price. c. raises the domestic price of the imported good above the world price. d. lowers the domestic price of the imported good below the world price.