What is the AA-curve? Why does it have a negative slope? What factors cause it to shift?
What will be an ideal response?
The AA-curve is the specific levels of E and Y under which the money and foreign exchange markets are in equilibrium.
The AA-curve has a negative slope because an increase in Y will cause E to fall (a domestic currency appreciation).
The factors that affect it are: the money supply, price level, expected exchange rate, foreign interest rates, and the level of real money demand.
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The key variable in determining changes in a country's standard of living is the
A. unemployment rate. B. long-run rate of economic growth. C. inflation rate. D. interest rate.
Which of the following statements is true about information transfer within an organization?
a. More information is always better. b. People at higher levels cannot add to the quality of a decision when an employee lower in the order has all the information and is able to take the decision on his/her own. c. Decision relating to a particular department in an organization usually depends only on the information provided from that department. d. Optimal amount of information removes the risk of errors in decision-making.
When expectations of inflation are revised downward, the short-run Phillips curve: a. shifts rightward. b. becomes steeper. c. shifts leftward
d. becomes flatter.
Which of the following is INCORRECT?
a. Emissions limits in PSD areas are more stringent than those in nonattainment areas b. New Source Performance Standards are technology-based and defined by the EPA c. Emissions limits for existing sources are more lenient than for new sources d. Technology-based standards used to control stationary sources are applied uniformly