The Keynesian AS curve differs from the classical AS curve in that:
a. the classical AS curve assumes flexible nominal wages.
b. the Keynesian AS curve is upward sloping.
c. the Keynesian AS curve focuses on short-run behavior.
d. b and c.
e. all of the above.
E
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If the exchange rate rises, foreign residents want to purchase ______ domestic goods and domestic residents want to purchase _____ foreign goods. In the market for foreign-currency exchange, these changes are shown as a _______ in the quantity of dollars ______
Fill in the blank(s) with correct word
When the price of petroleum increases, the supply of Question 21 options:
A. home heating oil increases. B. petroleum-based plastics increases. C. petroleum-based plastics decreases. D. airplane trips increases because of higher fuel costs. E. hydroelectric power decreases.
Corn is used to produce tortillas. If the price of corn increases:
A. the demand for tortillas increases. B. the demand for tortillas decreases. C. the supply of tortillas increases. D. the supply of tortillas decreases.
Which of the following situations will arise in the domestic market following the imposition of a tariff?
A. imports decrease, domestic production increases, prices increase B. imports increase, domestic production increases, prices increase C. imports increase, domestic production decreases, prices decrease D. imports decrease, domestic production increases, prices decrease