The long-run Phillips curve is the relationship between
A) unemployment and the price level at full employment.
B) unemployment and the inflation rate at the expected price level.
C) inflation and unemployment when the economy is at full employment.
D) inflation and real GDP at full employment.
E) inflation and the expected inflation rate.
C
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Suppose the exchange rate changes so that more Japanese yen are required to buy a dollar. We could conclude that:
a. the Japanese yen has appreciated in value. b. U.S. citizens will buy more Japanese imports. c. Japanese will demand more U.S. exports. d. U.S. citizens will buy less Japanese imports.
If a country's trade surplus falls, its net capital outflow rises
a. True b. False Indicate whether the statement is true or false
Refer to the figure below:
If price is $8,
A. there will be a shortage of 150 units. B. there will be a surplus of 150 units. C. price will fall. D. shortage of 75 units. E. surplus of 75 units.
Because of the problems of adverse selection and moral hazard, it has been suggested that the World Bank and International Monetary Fund
A. not make loans to risky nations because there is a high demand for funds from safer nations. B. impose tougher preconditions on borrowers. C. make loans to the riskiest nations so that private investors will not be tempted to take a risk. D. loan only to countries that have free elections.