In the open-economy macroeconomic model, if net capital outflow increases then
a. the demand for dollars in the market for foreign-currency exchange shifts right.
b. the demand for dollars in the market for foreign-currency exchange shifts left.
c. the supply of dollars in the market for foreign-currency exchange shifts right.
d. the supply of dollars in the market for foreign-currency exchange shifts left.
c
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The determination of which goods are public goods depends on: a. public laws
b. normative considerations. c. whether it is produced directly by the government or produced by a private sector firm. d. whether it is possible to exclude additional users from consuming the good if they do not pay for it.
What would happen if employment is continually above or below its full-employment level?
a. the aggregate demand curve would shift to move the economy back to full employment. b. the economy's self-correcting mechanism would move the economy back to full employment. c. the aggregate supply curve would become horizontal. d. the aggregate supply curve would become steeper. e. the economy's self-correcting mechanism would break down.
As potential real GDP is approached the aggregate supply curve becomes __________.
Fill in the blank(s) with the appropriate word(s).
An increase in the investment rate results in:
A) a lower steady-state capital stock and a lower steady-state output. B) a lower steady-state capital stock but a higher steady-state output. C) a higher steady-state capital stock and a higher steady-state output. D) a higher steady-state capital stock but a lower steady-state output.