Generally speaking, a country whose currency depreciates will experience, as a result,
A. Inflationary pressure because the prices of imports rise.
B. Increasing unemployment in export sectors.
C. Falling interest rates from a capital outflow.
D. Reduced aggregate demand.
Answer: A
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Over the past year, output grew 5%, capital grew 5%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.3 and 0.7, respectively, how much did productivity grow?
A) 0.5% B) 1.0% C) 2.2% D) 2.8%
Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases while the price of the goods are unchanged, her new budget constraint is
A. BD. B. CD. C. AD. D. It is not shown on this graph.
In the long run, the corporate profits tax will lead to
A. lower profits in the corporate sector, but higher profits in the noncorporate sector. B. higher profits in the corporate sector, but lower profits in the noncorporate sector. C. higher profits in the corporate sector and higher profits in the noncorporate sector. D. lower profits in the corporate sector and lower profits in the noncorporate sector.
When humanitarian efforts to free Sudanese slaves were introduced, ________ increased initially, which led to ________ prices
Over time, the slave trade became ________ profitable and the supply of slaves ________. A) supply; lower; less; decreased B) demand; lower; more; decreased C) demand; higher; more; increased D) supply; higher; more; increased