If the price level in the United States decreases, domestic goods will become relatively cheaper than foreign goods, the demand for U.S.-made goods will increase, and the U.S. aggregate demand curve will shift to the right
a. True
b. False
Indicate whether the statement is true or false
False
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The Keynesian short-run aggregate supply curve is horizontal because
A) it represents Say's law. B) it reflects wage and price inflexibility. C) it represents the full employment level of real GDP. D) it reflects the absence of money illusion.
How can we anticipate the proportion of a newly imposed unit excise tax that consumers will pay?
A) Consumers will pay most of the tax whenever their demand for a product is relatively unresponsive to price changes. B) Consumers will always pay 100 percent of an excise tax. C) Consumers will pay most of the tax whenever their demand for the product is very price sensitive. D) Since producers always pay 100 percent of an excise tax, we know consumers will not pay any of the tax.
If the cost of housing increases by 10 percent, then, other things the same, the CPI is likely to increase by about
a. 1.7 percent. b. 3.3 percent. c. 4.2 percent. d. 10 percent.
The official settlements balance is in ________ if the IS-LM intersection is ________ the FE curve.
A. deficit; on B. surplus; to the right of C. surplus; to the left of D. surplus; on