An external shock such as a foreign country's devaluation will shift the
A. LM curve to the right.
B. LM curve to the left.
C. FE curve to the right.
D. FE curve to the left.
Answer: D
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A plot of points representing the rate of inflation and the unemployment for the United States since 1953 reveals that
A) there does not appear to be any trade-off between the two variables. B) there is an inverse relationship between the two variables. C) there is a positive relationship between the two variables. D) none of the above.
People who would like to work full-time, but are able to find only part-time work are:
A. discouraged workers. B. considered out of the labor force. C. counted as employed. D. counted as unemployed.
M1 includes
A) currency in circulation, checking account deposits in banks, and holdings of traveler's checks. B) currency in circulation, savings account balances, and checking account deposits in banks. C) currency in circulation, savings account balances, checking account deposits in banks, and holdings of traveler's checks. D) coins, savings account balances, traveler's checks.
The demand curve of a perfectly competitive firm is determined by
a. the price the firm chooses to charge. b. the intersection of the market demand and supply curves c. the reputation of the firm. d. the level of the quality of the good the firm produces.