Assuming no change in the nominal exchange rate, how will a decrease in the price level in the United States relative to France affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)
A) The real exchange rate will fall.
B) The real exchange rate will be unaffected.
C) The real exchange rate will rise.
D) The impact on the real exchange rate cannot be predicted.
A
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If technological change occurs in the economy,
A) the long-run aggregate supply curve will shift to the left. B) we will move up along the long-run aggregate supply curve. C) we will move down along the long-run aggregate supply curve. D) the long-run aggregate supply curve will shift to the right.
Because of automatic stabilizers, in recessions the government budget deficit ________, while in expansions the deficit ________
A) falls; rises B) falls; falls C) rises; falls D) rises; rises
Studies show that, in the United States,
A) price elasticity of demand for agricultural products has hovered around 3.2 for many years. B) as real income has been increasing, the per-capita demand for food has been decreasing. C) as real income has been increasing, the per-capita demand for food has been increasing by much more. D) none of the above
Who was the leader that introduced communism and central planning to the former Soviet Union?
a) Karl Marx b) Joseph Stalin c) Vladimir Lenin d) Friedrich Engels