Assuming the United States is the "domestic" country, if the real exchange rate between the United States and France increases from 1.5 to 1.8
A) the prices of U.S. goods and services have increased by 20% relative to France.
B) the prices of U.S. goods and services have increased by 53% relative to France.
C) the prices of U.S. goods and services have increased by 3% relative to France.
D) the prices of U.S. goods and services have decreased by 16% relative to France.
A
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Suppose the shift from AD0 to AD1 and from AS0 to AS1 is the result of fiscal policy. Which of the policies below could lead to these shifts?
i. An increase in government expenditure ii. A tax cut iii. A decrease in government expenditure iv. A tax hike A) iv only B) i and ii C) i and iv D) i only E) iii and iv
Equilibrium is reached where there is no inherent force causing quantity supplied or quantity demanded to change
a. True b. False Indicate whether the statement is true or false
Over the past several decades in the United States, the labor-force participation rate of women has
a. increased, and the labor-force participation rate of men has increased. b. increased, and the labor-force participation rate of men has decreased. c. decreased, and the labor-force participation rate of men has increased. d. decreased, and the labor-force participation rate of men has decreased.
Using Figure 2 above, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE3 might be:
A. taxes increase. B. interest rates increase. C. wealth level increases. D. domestic income increases.