Other things the same, when the real exchange rate of the dollar appreciates, U.S. goods become more desirable to U.S. residents, but less desirable to foreign residents
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose that an economy is initially producing at the full-employment level of output. Now suppose there is a reduction in the money supply. Other things being equal we can expect
A) demand-side inflation. B) supply-side inflation. C) deflation. D) cost-pull inflation.
When regulating a natural monopoly, government officials face a dilemma that:
a. the efficient price may not allow the firm to break even. b. the efficient price may lead to an inefficiently high level of output. c. the efficient price leads to an output level that is too low. d. the efficient price may force the firm to shut-down. e. long-run average costs are constantly increasing.
The text points out that since the 1970s, which of the following regions of the United States became a "population magnet?"
a. Midwest b. Northeast c. South d. West e. North
Occupations X and Y employ persons with the same productivity. Workers in the two occupations work the same number of hours per day when on the job. Employment is stable throughout the year in X, while Y is characterized by seasonal layoffs. How will the hourly wage rate and annual earnings compare in the two occupations?
a. The hourly wage rate will be higher in X, but the annual earnings will be higher for Y. b. Both the hourly wage rate and annual earnings will be higher in X. c. Both the hourly wage rate and annual earnings will be higher in Y. d. The hourly wage rate will be higher in Y, but the annual earnings will likely be higher for X.