If exchange rates are floating, a contractionary monetary policy in the United States will cause the dollar to ________ relative to other currencies and cause net capital outflows to ________
A) appreciate; increase
B) appreciate; decrease
C) depreciate; increase
D) depreciate; decrease
B
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An inflationary gap occurs when
A) aggregate demand falls, but other things remain constant. B) short-run aggregate supply falls, but other things remain constant. C) the short-run equilibrium level of real GDP is greater than long-run aggregate supply. D) the short-run equilibrium level of real GDP is less than long-run aggregate supply.
The urban consumers that the CPI is based on includes:
A. bank tellers. B. greeters at Walmart. C. retired persons. D. All of these are included.
A manager of a firm with market power faces the marginal revenue product and average revenue product curves shown below. The firm incurs weekly fixed costs of $1,800. The firm employs a single variable input, labor, which costs $600 per worker each week.
Given the above, the 14th worker hired adds ________ to the firm's total revenue each week.
A. $200 per week B. $400 per week C. $500 per week D. $700 per week E. $900 per week
You borrow money to buy a house in 2009 at a fixed interest rate of 5.5 percent. By 2012, the inflation rate has steadily fallen to 1.5 percent from the recent high of 3.0 percent in 2009. Considering only your mortgage, is inflation good news or bad news for you?
A. bad news, because inflation hurts everyone B. bad news, because it makes the real value of your mortgage payments increase C. good news, because it makes the real value of your mortgage payments decrease D. bad news, because it makes the nominal value of your mortgage payments increase