Theoretically, when a currency depreciates one can predict that
a. the price level will rise and real GDP will rise.
b. the price level will fall and real GDP will fall.
c. real GDP will rise, but price change is not predictable.
d. the price level will rise, but real GDP change is not predictable.
d
You might also like to view...
Which of the following is NOT a reason that free trade stimulates economic growth?
A) Free trade encourages a more rapid spread of technology. B) Industries have larger markets. C) The importation of technically advanced products enables the country to imitate the technology. D) Free trade keeps domestic prices up, enabling firms to make more profits that can be spent on research and development.
In reality, reliable information is usually costly for both consumers and producers
Indicate whether the statement is true or false
In a debate on the state of the economy Senator X pointed out that the unemployment rates for teenagers, blacks, and hispanics had increased over the last year, while Senator Y stated that the unemployment rate in the United States was at its lowest level in more than 30 years. In this example, aggregate data is being used by:
A. neither senators B. both senators C. senator X D. senator Y
In the above figure, what is the TOTAL cost of producing 5 units of output?
A. $60 B. $100 C. $2,000 D. $225 E. $10