Suppose a student group from your university tours the United Kingdom. As they purchase English goods, their actions will
a. create a demand for dollars and a supply of English pounds in the foreign exchange market.
b. create a demand for English pounds and a supply of dollars in the foreign exchange market.
c. cause the U.S. dollar to appreciate.
d. cause the English pound to depreciate.
B
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Which of the following statements is true of unemployment?
A) In periods of contraction, the unemployment rate in an economy decreases. B) The unemployment rate in most of the developed nations in the world is zero percent. C) In periods of expansion, the unemployment rate in an economy increases. D) The rate of unemployment is positive in any well-functioning economy.
A grocery store sells a bag of potatoes at a fixed price of $2.30. Which of the following is a term used by economists to describe the money received from the sale of an additional bag of potatoes?
A) marginal costs B) pure profit C) net benefit D) marginal revenue E) gross earnings
Assume that a high proportion of recent college graduates decides to stay in school seeking advanced degrees, rather than confront the challenge of landing a good job in the midst of generally high unemployment
What is the direct impact of this behavior on (a) the labor force participation rate, (b) the employment ratio, and (c) the unemployment rate?