Holding other things constant, increases in the price level in the US will
a. Cause the dollar to gain value
b. Cause the dollar to lose value
c. Does not affect the dollar value
d. None of the above
b
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Other things held constant, higher saving rates lead to
A) increases in the number of hours workers work. B) decreases in real per capita GDP. C) a lower standard of living. D) higher living standards.
Refer to Figure 7-2. With the tariff in place, the United States produces
A) 18 million pounds of coffee. B) 20 million pounds of coffee. C) 26 million pounds of coffee. D) 38 million pounds of coffee.
When a consumer's willingness to buy a good or service is influenced by the number of people who have purchased that good or service, this is called
A) a switching cost. B) an opportunity cost. C) a network effect. D) an advertising gimmick.
When a country experiences high inflation and unemployment simultaneously, which of the following problems should be addressed first?
a. High price level b. High unemployment c. Low aggregate demand d. Low aggregate supply