Which of the following would most likely cause a nation's currency to depreciate?
a. an increase in domestic real interest rates
b. an increase in exports coupled with a decline in imports
c. an increase in the nation's inflation rate
d. a balance of trade surplus
C
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The natural real GDP will ________ following a rise in energy prices because
A) rise; labor productivity increases. B) fall; labor productivity increases. C) fall; real wages are flexible and employment is less attractive relative to leisure. D) B and C are both correct.
This graph depicts the demand for a normal good.
A shift from B to A in the graph shown might be caused by:
A. a decrease in the good's price.
B. an increase in the good's price.
C. a decrease in the price of a substitute.
D. an increase in the price of a substitute.
Which of the following is the order of fastest to slowest acting policy, once enacted, in affecting aggregate demand?
a. taxes, money, government spending b. taxes, government spending, money c. government spending, taxes, money d. government spending, money, taxes
How did Arthur Laffer use Robin Hood and Sherwood Forest to explain the advantage of supply-side economics?
What will be an ideal response?