While vacationing in Italy, you see an interesting meal on a menu. The price is 24 euros. A. If the exchange rate is .80 euros per dollar, how many dollars would you have to give up to buy the meal? B. If the dollar appreciated against the euro, but the price of the meal remained 24 euro, would the meal cost more or fewer dollars? Explain
A. 24 euros = $x times .80 euro per dollar, x = 24/.80 = 30
B. It would cost fewer dollars. If the dollar appreciated against the euro, each dollar would buy more euros.
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a. less than the individual's spending. b. equal to the individual's spending. c. greater than the individual's spending. d. offset by another individual's saving.
The logic behind the tradeoff between inflation and unemployment is that high aggregate demand puts upward pressure on wages and prices while raising output
a. True b. False Indicate whether the statement is true or false
Suppose that the technology used to manufacture laptops has improved. The likely result would be:
A. a decrease in supply of laptops. B. a decrease in quantity supplied of laptops. C. an increase in supply of laptops. D. an increase in quantity supplied of laptops.
Refer to the accompanying figure.
Based on the figure, the income-expenditure multiplier equals:
A. 0.5. B. 2. C. 200. D. 5.