The IS curve shifts to the left where there is
A) a reduction in current taxes.
B) an increase in expected future taxes.
C) an increase in expected future output.
D) all of the above
E) none of the above
B
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If nominal GDP exceeds real GDP for a specific year, then the GDP deflator must be
A) greater than 100. B) less than 100. C) equal to 100. D) less than 0.
When an exchange rate is determined strictly by the demands and supplies for a nation's currency, it is called:
a. fixed. b. arbitrage. c. floating. d. unilateral. e. balance of payments.
If the price index was 90 in year 1, 100 in year 2, and 95 in year 3, then the economy experienced
a. 10 percent inflation between years 1 and 2 ,and 5 percent inflation between years 2 and 3. b. 10 percent inflation between years 1 and 2, and 5 percent deflation between years 2 and 3. c. 11.1 percent inflation between years 1 and 2, and 5 percent inflation between years 2 and 3. d. 11.1 percent inflation between years 1 and 2, and 5 percent deflation between years 2 and 3.
When production costs fall,
a) the aggregate-demand curve shifts to the right. b) the short-run aggregate-supply curve shifts to the right. c) the short-run aggregate-supply curve shifts to the left. d) the aggregate-demand curve shifts to the left.