In the simple Keynesian model, an increase in aggregate demand leads to an increase in
A) Real GDP and the price level at all levels of Real GDP.
B) the price level and no change in Real GDP for levels of Real GDP below Natural Real GDP.
C) the price level and a decrease in Real GDP at all levels of GDP.
D) Real GDP and no change in the price level for levels of Real GDP below Natural Real GDP.
D
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What are the factors affecting the demand for foreign currency?
What will be an ideal response?
If U.S. consumers increase their demand for apples from New Zealand, then other things the same New Zealand's
a. imports and net exports rise. b. imports rise and net exports fall. c. exports and net exports rise. d. exports rise and net exports fall.
Higher interest rates in the United States will attract foreigners to U.S interest-earning assets. This
A) decreases U.S. net exports. B) increases U.S. net exports. C) decreases U.S. imports. D) will have no effect on net exports.
Related to the Economics in Practice on page 214: According to the Economics in Practice, firms where managers had more extensive training experienced
A. a decrease in the marginal product of labor. B. increased productivity. C. increasing wage rates. D. a decrease in the marginal revenue product of labor.