When policy makers decide to revalue the currency, such an action generally represents
A) an increase in the pegged value of the domestic currency.
B) a decision to let the currency float.
C) a reduction in the foreign price level.
D) an increase in the domestic price level.
E) none of the above
A
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Which of the following forms the largest share of gross domestic product in the United States, when measured using the expenditure method?
A) Investment expenditure B) Government expenditure C) Foreign expenditure on domestic goods D) Expenditure on consumption
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
Combining various goods and services into a convenient grouping is called
a. conglomeration. b. blending. c. congregation. d. agglomeration. e. aggregation.
By looking at the graphs showing the impact of a positive supply shock on aggregate demand and aggregate supply and on the Phillips curve, we can see that a positive supply shock would ______.
a. increase price levels and RGDP, but decrease inflation rates and unemployment rates
b. increase price levels, RGDP, inflation rates, and unemployment rates
c. decrease price levels, RGDP, inflation rates, and unemployment rates
d. decrease price levels, inflation rates, and unemployment rates, but increase RGDP