The foreign purchases effect on aggregate demand suggests that a ________.
A. rise in our domestic price level will increase our imports and reduce our exports, thereby reducing the net exports component of aggregate demand
B. fall in our domestic price level will increase our imports and reduce our exports, thereby reducing the net exports component of aggregate demand
C. rise in our domestic price level will decrease our imports and increase our exports, thereby reducing the net exports component of aggregate demand
D. fall in our domestic price level will decrease our imports and increase our exports, thereby reducing the net exports component of aggregate demand
Answer: A
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Jim has the following assets and liabilities:Credit Card balance$2,000Cash$500Government bonds$2,000Checking$750Car loan balance$5,000Car$15,000Which of the following actions would increase Jim's money demand by $200?
A. Jim pays $200 cash for a new lamp. B. Jim gets a $200 cash advance on his credit card and puts the proceeds in his checking account. C. Jim writes a check for $200 to pay down his credit card balance. D. Jim writes a check for $200 to pay down her car loan balance.
What is measured on the horizontal axis of the aggregate demand/aggregate supply model?
A) real wealth B) real Gross Domestic Product (GDP) C) prices D) nominal income
The degree of monopsony power that a firm enjoys is determined by
A) elasticity of market demand, elasticity of market supply, and number of buyers in the market. B) elasticity of market supply, number of buyers in the market, and how buyers interact. C) number of buyers in the market, how buyers interact, and number of sellers of the resource. D) how buyers interact, number of sellers of the resource, and elasticity of market demand.
Which of the following statements about U.S. exports and imports is true?
a. Exports comprise a higher percentage of GDP than imports do. b. Quotas serve to keep the ratio of exports to imports constant. c. Since 1960, exports and imports typically have not risen above 5% of GDP. d. Since 1960, both exports and imports have grown as a percentage of GDP.