Refer to the above figure. Suppose the economy is at E. A stronger dollar leads to a lower real GDP. Which of the aggregate supply curves must be the relevant curve after the change in the value of the dollar?
A) 1
B) 2
C) 4
D) 5
B
You might also like to view...
Tom & Jerry are running Hanna Barbera's lemonade stand as two profit centers. Tom makes the lemonade while Jerry sells it. Jerry argues that Tom is transferring the lemonade to him priced too high, which forces him to charge the customers a high price, losing sales. What could be a profitable solution to this transfer-pricing problem?
a. Move the decision making to Hanna Barbera b. Turn Tom's division into a cost center c. Base Tom's reward on the company profits d. Base Jerry's reward on the company profits
For the monopolistically competitive firm, the demand curve it faces will be steeper the:
A. more easily the good can be substituted. B. less easily the good can be substituted. C. more complement goods are available. D. less complement goods are available.
Which of the following is not a problem associated with the U.S. federal budget process?
a. The congressional committee framework b. The lengthy budget process c. The failure to meet deadlines d. The lack of detail in the budget e. Uncontrollable budget items
Universal service may require making a service available in small communities where the limited scale of operations may make costs extremely high
a. True b. False Indicate whether the statement is true or false