In the fooling model, AD/SAS equilibria to the right of LAS are unstable because ________ nominal wages shift ________
A) falling, AD downward
B) falling, SAS downward
C) rising, AD upward
D) rising, SAS upward
D
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Arrange the following goods from least to most elastic, explaining your ordering: gasoline, Exxon gas, Exxon gas at a particular gas station.
What will be an ideal response?
If at a particular price level real domestic output from producers is greater than real domestic output desired by purchasers, there will be a:
A. shortage and the price level will fall. B. shortage and the price level will rise. C. surplus and the price level will fall. D. surplus and the price level will rise.
Under a situation of asset market equilibrium,
A. the quantity of money supplied equals the quantity of money demanded. B. the quantity of money supplied equals the quantity of nonmonetary assets demanded. C. the quantity of money supplied equals the quantity of nonmonetary assets supplied. D. the quantity of nonmonetary assets supplied equals the quantity of monetary assets demanded.
The Official Settlements Balance is another way of describing
A) the actual tabulation of reserve assets held by government central banks and treasuries. B) the net value of merchandise trade between two nations. C) the net foreign direct investment between two countries. D) the actual value in one currency of trade divided by the value in a second currency.