Economic aggregates are not observable in the "real world."
a. True
b. False
Indicate whether the statement is true or false
True
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Flexible exchange rates occur when
A) speculators bet that a currency will soon depreciate. B) governments and central banks spend foreign exchange to prop an exchange rate at a certain level. C) no one knows the true value of a currency. D) exchange rates are determined by forces of supply and demand.
Which of the following statements is true?
A. Approximately 25 percent of Americans live in poverty. B. American poverty is less severe than global poverty. C. American poverty is defined by homelessness and malnutrition. D. American poverty standards are below world poverty standards.
Workers expect inflation to rise from 3% to 5% next year. As a result, this should
A) shift the short-run aggregate supply curve to the left. B) shift the short-run aggregate supply curve to the right. C) move the economy up along a stationary short-run aggregate supply curve. D) move the economy down along a stationary short-run aggregate supply curve.
Why do price discriminating firms often offer lower prices to children and the elderly?
A. Such a strategy lowers the costs of the firm. B. Their demand for goods and services tends to be less elastic than other consumers. C. They have a lower willingness to pay than other consumers. D. These firms are more interested in equity than profit maximizing.