In the long run, the chief determinant of exchange rate changes is a change in
a. interest rates.
b. real GDP.
c. the price of gold.
d. price levels.
d
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If unplanned inventory changes are positive, what is the relationship between aggregate planned expenditure and real GDP?
What will be an ideal response?
The longer the time period that suppliers have to adjust to price changes, the
A) greater will be the price elasticity of supply. B) lower will be the price elasticity of supply. C) lower will be the price elasticity of demand. D) greater will be the price elasticity of demand.
If the price elasticity of demand is 4 and the price of migraine medicine increases by 6%, what will be the percentage change in quantity demanded?
a. 6% b. 4% c. 24% d. 67%
Assume the price of pizza decreases. As a result, your real income increases and you increase the quantity of pizza purchased each month. This is an example of the:
A. substitution effect. B. income effect. C. revenue effect. D. consumer price effect.