On the 45 degree line diagram, the 45 degree line shows points where
What will be an ideal response?
real aggregate expenditure equals real GDP
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If the intersection of the IS curve with the horizontal axis comes at a level of output below the natural level of output, the Fed
A) can easily bring the economy back to the full-employment level of output. B) loses control of the economy. C) must use contractionary model policy to correct economic problem. D) must decrease money supply and ignore interest rates.
Related to the Economics in Practice on page 6: The opportunity cost to Mattel of having its Barbie doll assembled in China is
A. having the Barbie doll assembled in the next best available location. B. the $2 export value the doll carries when it leaves Hong Kong. C. the $8 of its $10 retail value which is captured in the United States. D. the low wages paid to Chinese workers.
Using the information in Table 6.2, the Astro Consumer Price Index for 2014 is
A) 24. B) 100. C) 124. D) 189.
When the effects of the global financial crisis started to spread more quickly throughout the rest of the world, the U.S. dollar ________ because demand for U.S. assets ________
A) appreciated; increased B) depreciated; increased C) appreciated; decreased D) depreciated; decreased