The exchange rate of the dollar relative to other currencies is determined by market forces. When equilibrium is present in the exchange rate market,
What will be an ideal response?
the purchases of Americans from foreigners will be equal to the sales of Americans to foreigners.
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Rapid economic growth has increased the economic well-being of U.S. citizens because
a. people are now earning higher incomes while goods and services are cheaper b. the dollar is worth now more than in the past c. the output of goods and services has risen faster than the population d. the population is now living and working longer e. the population has increased while production has decreased
If there is a "long and variable time lag" between when a change in monetary policy is instituted and when it impacts aggregate demand and output, this will
What will be an ideal response?
Refer to the information provided in Figure 10.2 below to answer the question(s) that follow. 
Figure 10.2 Refer to Figure 10.2. This firm's marginal cost curve has shifted from MC0 to MC1. A profit-maximizing firm should ________ the amount of output produced and ________ its demand for labor.
A. increase; decrease B. keep constant; increase C. decrease; decrease D. increase; increase
In the case of a vertical contract curve, union negotiations will result in the firm hiring
A. fewer workers but at a higher wage than it would in the absence of the union. B. fewer workers but at a lower wage than it would in the absence of the union. C. the same number of workers but at a lower wage than it would in the absence of the union. D. the same number of workers but at a higher wage than it would in the absence of the union. E. more workers and at a higher wage than it would in the absence of the union.