Other things the same, as the price level rises,
a. the dollar depreciates.
b. the interest rate falls.
c. people feel less wealthy.
d. All of the above are correct.
c
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The short run in macroeconomics is the period in which
A) prices change significantly. B) the demand curve is vertical. C) no contracts or agreements exist to fix prices. D) demand determines output.
According to the principle of Rawlsianism:
A. society should place equal weight on the well-being of every individual. B. society should place all weight on the well-being of its worst-off member. C. society should place all weight on the well-being of its best-off member. D. equal division of society's resources among all members of the population is the most equitable outcome.
Under the managed floating system of exchange rates:
A. all exchange rates vary with changes in the free-market prices of gold. B. industrialized nations meet once each year to negotiate readjustments in their exchange rates. C. exchange rates are essentially flexible, but governments intervene to offset disorderly fluctuations in rates. D. exchange rates are adjusted at the discretion of the IMF.
In practice, one of the principal problems with aggregate demand management is that
A) changes in aggregate demand do not affect output. B) changes in aggregate demand cannot reduce unemployment. C) changes in aggregate demand are highly inflationary. D) stabilization policies could increase aggregate demand too much and at the wrong times.