The slope of the BP curve reflects the
A) ease with which capital flows across a nation's borders.
B) inflation rate of the country.
C) sensitivity of income to changes in the inflation rate.
D) ease with which the central bank can keep an exchange rate fixed.
A
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A perfectly competitive firm with a random demand has a ________ demand curve and ________ marginal revenue curve.
A) horizontal; horizontal B) vertical; horizontal C) vertical; vertical D) horizontal; vertical
Demand and supply are terms that refer to the behavior of people and firms as they interact in markets.
a. true b. false
Because the U.S. traditionally gives more foreign aid than it receives, the U.S. traditionally has a negative value for
A) the capital account balance. B) the trade balance. C) investment income. D) net transfers received. E) all of the above
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher