If the U.S. dollar depreciates in value relative to foreign currencies, then this will:
A. decrease aggregate demand and increase aggregate supply.
B. decrease aggregate demand and aggregate supply.
C. increase aggregate demand and aggregate supply.
D. increase aggregate demand and decrease aggregate supply.
Answer: D
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P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below. 
Suppose QRS-TV enters into an agreement with P-TV that gives QRS-TV the exclusive right to air a reality show during this time slot. QRS-TV would have to pay P-TV ________ in order to persuade P-TV to enter into this agreement.
A. nothing B. at least $5 million C. more than zero, but less than $5 million D. at least $10 million
If the economy is producing ________, unemployment is at its natural rate
A) at an unemployment rate of zero B) at an inflation rate of zero C) at potential GDP D) above potential GDP
In reality, overall growth and income for the poorest are:
A. highly positively correlated, but not perfectly. B. uncorrelated. C. highly negatively correlated, but not perfectly. D. slightly positively correlated.
Which of the following is the formula for the government's budget deficit?
a. S - G b. G -T c. C + I + G d. S + I e. I + G