Given AD2 and AS1, the equilibrium price level in Figure 8.3 is
A. P1.
B. P2.
C. P3.
D. P4.
Answer: C
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In the above figure, the slope at point b
A) lies between 1/3 and 1. B) equals 1. C) lies between 1 and 2. D) exceeds 2.
At the 1976 IMF conference in Jamaica,
A) the United States reaffirmed its commitment to buy and sell gold at a fixed price. B) currencies were formally allowed to float. C) the major countries of the world agreed to continue a system of fixed exchange rates. D) the gold standard was reestablished.
In the aggregate demand/aggregate supply model, a country's full-employment real GDP is represented by:
A. prices. B. aggregate demand. C. aggregate supply. D. an increase in the general level of prices.
The primary benefits derived from tariffs usually accrue to the:
A. domestic consumers of goods protected by the tariffs. B. foreign producers of goods protected by the tariffs. C. domestic producers of export goods. D. domestic suppliers of goods protected by the tariffs.