All else being equal, if the prospect of a recession leads the Federal Reserve to ease monetary policy, the equilibrium value of the exchange rate for the U.S. dollar will:
A. fall.
B. either rise or fall depending on whether the supply or demand for dollars changes more.
C. remain fixed.
D. rise.
Answer: A
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Which of the following is a better measure of the productivity of employed people in a country?
A) Gross Domestic Product B) Gross National Product C) Income per worker D) Income per capita
The above table shows the tons of steel and concrete that can be produced by the United States and France in an hour. From the data in the table
A) France has a comparative advantage in the production of concrete. B) the United States has a comparative advantage in the production of concrete. C) France has an absolute advantage in the production of concrete. D) the United States has a comparative advantage in the production of both goods.
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Which of the following will occur as the price of a good decreases?
A. Demand for that good will increase. B. The quantity demanded for that good will increase. C. The demand curve for that good will shift to the right. D. The demand curve for that good will shift to the left.